Austerity jeopardises social peace

Europe's crisis-stricken countries are introducing harsh austerity measures to reduce their debts. Hundreds of thousands of people are taking to the streets to protest against social cuts. The press sees social peace in Europe under threat.

The unrest in Turkey is a portent of developments in other European countries, journalist Jeroen Olyslaegers warns in the left-liberal daily De Morgen: » more

The unrest in Turkey is a portent of developments in other European countries, journalist Jeroen Olyslaegers warns in the left-liberal daily De Morgen: "In these weeks of agitation the International Labour Association published an assessment according to which the risk of serious social unrest in Europe is increasing in Spain, Portugal, Greece and Italy. What makes these people so angry? Social injustice, unemployment and a drastic drop in living standards. 'Come off it', I hear people say, 'Europe isn't Turkey.' I have a hunch that such statements fall under the heading 'perception', or 'wishful thinking'. The world is turning even faster now thanks to the Turkish revolt. And anger at inequality is growing, above all in Europe."

A new lost generation is emerging in Europe as a result of the crisis, columnist Henk Hofland warns in the liberal daily NRC Handelsblad: » more

A new lost generation is emerging in Europe as a result of the crisis, columnist Henk Hofland warns in the liberal daily NRC Handelsblad: "The new generation that is now in danger of becoming lost grew up with the unwritten ideology of consumerism. ... The consumerist ideology is not concerned with an equitable social structure or questions of foreign policy. Its key words are: here, now, a lot, great, super. ... Now the masses of consumers are slowly realising that this paradise on earth threatens to go bankrupt. How will these alienated millions react? ... In the summer of 2011 riots broke out in several big British cities. ... And last week we saw the unrest in Sweden. In view of Europe's unchanging policies, must we prepare ourselves for more such outbreaks? Or are we waiting for the next populist to seduce the masses of consumers with empty promises? If the stagnation in Brussels lasts much longer, it cannot be ruled out that this European Union will become a threat to the public order."

For months people have been taking to the streets across Europe to show their discontent, political scientist Valentin Naumescu notes in the blog portal Contributors and warns of the dangers of populism: » more

For months people have been taking to the streets across Europe to show their discontent, political scientist Valentin Naumescu notes in the blog portal Contributors and warns of the dangers of populism: "Within the context of European protests, discontent and populism can bubble up at any time (for example when there are parliamentary elections in Germany or elections to the EU Parliament, or even a strike could suffice): all it takes is a spark and an inflammatory discourse by the opponents of the system; or one or several charismatic leaders who promise an end to the enduring crisis of the European project, to mobilise the pent-up negative energies of millions of Europeans. … The EU urgently needs to offer them economic and social contentment again, particularly in those countries where the decline in living standards has been particularly tangible. Only in this way can the EU survive as an idea cherished by its citizens, and not be seen as their enemy. ... Now one could say that the US is also experiencing a crisis. But the expectations of the state there are far lower, and consequently also the risk that the system collapses."

The high unemployment figures in Europe could lead to a popular uprising, the liberal daily Le Soir warns: » more

The high unemployment figures in Europe could lead to a popular uprising, the liberal daily Le Soir warns: "Unemployment is exploding in Europe. And the official figures give us only a partial idea of the social reality on the Old Continent. ... 45.4 million Europeans suffer from a lack of work - that's around 19 percent of the active population. ... These figures are chilling because they testify to the unravelling of the social fabric and the growing rift [between rich and poor] that could soon provoke an insurrection among the population. More and more people are calling for a growth policy for Europe and an easing of the austerity programmes."

During a home game on Sunday between the reigning football champion AEK Athens, which for the first time in its history is facing relegation, and Panthrakikos Komotini, hundreds of fans stormed onto the pitch. The police used tear gas and stun grenades to bring the fans under control and the game was broken off. The left-liberal daily To Ethnos believes that the football fans' growing anger is connected to the crisis: » more

During a home game on Sunday between the reigning football champion AEK Athens, which for the first time in its history is facing relegation, and Panthrakikos Komotini, hundreds of fans stormed onto the pitch. The police used tear gas and stun grenades to bring the fans under control and the game was broken off. The left-liberal daily To Ethnos believes that the football fans' growing anger is connected to the crisis: "The more the crisis escalates, the more supporters turn against the presidents [or managers] of their own teams. Because the presidents of Panathinaikos, Olympiakos and AEK (although less so) are traditionally members of Greece's economic elite. In the past this wouldn't have bothered the fans. ... But now things have changed. The fans' wild tirades against the presidents, regardless of the teams' performances, are probably one of the consequences of the crisis and the growing social tensions. And perhaps also a harbinger of developments in the social and political sphere."

As was the case with neighbouring Greece, the brunt of the anger in the Cypriot protests against the bank bailout package is directed against Germany and Chancellor Angela Merkel, who is being compared with Hitler. Unfortunately Italy is also contributing, albeit more subtly, to this absurd smear campaign, economic policy expert Fabio Pammolli laments in the liberal-conservative daily Corriere della Sera: » more

As was the case with neighbouring Greece, the brunt of the anger in the Cypriot protests against the bank bailout package is directed against Germany and Chancellor Angela Merkel, who is being compared with Hitler. Unfortunately Italy is also contributing, albeit more subtly, to this absurd smear campaign, economic policy expert Fabio Pammolli laments in the liberal-conservative daily Corriere della Sera: "In Italy resentment is growing above all within the elite. … The troika's austerity measures are being put on a par with the deflationary measures of Chancellor Brüning, which helped Adolf Hitler rise to power in 1933. The Hartz reforms of the German labour market are being equated with the protectionist mercantilism of the Reichsbank president and minister for econonomic affairs at the time Hjalmar Schacht. … Emotions and negative slogans are shaping the collective conscience. … They undermine the impact of the rational arguments that, in the specific case of our relations with Germany, make it clear that there is no good reason for this resentment. … We ourselves failed to consolidate our own budget and instead relied on the low interest rates that Germany brought into the monetary union as a dowry."

The debt crisis is increasingly endangering European cohesion, historian and commentator Timothy Garton Ash writes in an article published by the left-liberal daily El País: » more

The debt crisis is increasingly endangering European cohesion, historian and commentator Timothy Garton Ash writes in an article published by the left-liberal daily El País: "'We have made Italy, now we must make Italians' - thus the old saying. Today we have made the euro and the crisis of the euro is unmaking Europeans. People who felt enthusiastically European 10 years ago are reverting to angry national stereotypes. 'Hitler-Merkel' said a banner carried by young Cypriot protesters earlier this week. Next to those words there was an image of the European flag, its yellow stars on a blue background now angrily crossed out in red. Sweeping negative generalisations are heard about 'north' and 'south' Europeans, almost as if these were two different species. ... As parts of Europe became more anti-German so parts of Germany became more anti-European. A vicious spiral looms into view, like a twister on a rural highway in the American midwest."

The Spanish Citizens' initiative against evictions has been organising demonstrations outside the homes of politicians for several weeks. This form of protest known as 'escrache' must be stopped immediately, the conservative daily ABC urges: » more

The Spanish Citizens' initiative against evictions has been organising demonstrations outside the homes of politicians for several weeks. This form of protest known as 'escrache' must be stopped immediately, the conservative daily ABC urges: "The private and family life of politicians, just like that of any other citizen, deserves complete respect. The term 'escrache' conceals an unacceptable persecution and coercion through threats, and is particularly reprehensible when it targets young children and other members of a politician's family. These actions must be stopped immediately, not just through firm rejection by society but also by applying the law. If the platform against evictions wants to be a moral benchmark for Spanish society it must use peaceful means to defend its cause. … Democracy offers more than enough alternatives for freely expressing our views."

The Spanish ruling conservative People's Party on Monday condemned a new form of protest in Spain called "escrache" in which citizens demonstrate outside the private residences of politicians who oppose a ban on evictions. The left-leaning online paper Madrilonia defends the demonstrators: » more

The Spanish ruling conservative People's Party on Monday condemned a new form of protest in Spain called "escrache" in which citizens demonstrate outside the private residences of politicians who oppose a ban on evictions. The left-leaning online paper Madrilonia defends the demonstrators: "The 'escraches' are legitimate because there is a movement behind them that has a genuine purpose. The paranoid stories about uncontrollable protests are fabricated and ridiculous. Nothing is better organised than an 'escrache'. And no one is more aware of the boundaries that should not be overstepped than those who participate in them, precisely because a consensus has been reached on which boundaries are to be overstepped: namely those separating the public from the private sphere. This is why the demonstrators stand outside the door but don't go beyond it. All these symbolic details confer legitimacy and on this movement as an ethical form of protest. Any comparison with evictions only highlights the obvious: with evictions, the border between the public and the private is violated to the utmost degree and in a brutal manner."

Spanish Europe expert José Ignacio Torreblanca travelled to Sofia to participate in a conference on the economic crisis in Europe. He notes in his blog with the left-liberal daily El País that he was surprised to find Bulgaria discussing the same problems as Spain: » more

Spanish Europe expert José Ignacio Torreblanca travelled to Sofia to participate in a conference on the economic crisis in Europe. He notes in his blog with the left-liberal daily El País that he was surprised to find Bulgaria discussing the same problems as Spain: "The first thing that strikes you is that Europe is so immersed in the crisis that [here in Bulgaria] almost as soon as you step off the plane you can start a debate with the politicians of the two leading political forces. … And even though you don't know much about their country you can still understand everything they say. The parallels in the debates are astounding: austerity, growth, a crisis of democracy, Europe's role, Germany's role, populism. We may not have a European 'demos', but apparently the Europeans are all talking about the same issues. That's a start. … The example of Bulgaria shows us that austerity is not enough to provoke a popular uprising. Austerity is a powder keg, but the sparks that cause it to explode are the lack of politicians setting a good example and the perception of corruption."

The ex-chief of the Euro Group Jean-Claude Juncker has warned that the economic conflicts in Europe could escalate dangerously: » more

The ex-chief of the Euro Group Jean-Claude Juncker has warned that the economic conflicts in Europe could escalate dangerously: "Those who believe that the eternal question of war and peace is no longer relevant in Europe may be making a huge mistake," he told Germany's Der Spiegel magazine. His words should be taken seriously, the liberal-conservative daily Diário de Notícias writes: "This sentence was not spoken by a radical, nor the leader of an underdeveloped country. He doesn't come from Iran. … The warning may seem melodramatic. But because it comes from someone who has a good understanding of the reality in Europe and the impact the crisis has on society the warning should at least provoke concern among EU leaders. Juncker calls on them to be watchful and always aware of the fact that only Europe's unity gives them the power they have in the world. And by the way, history has shown that there are certain signs that should not be ignored."

The EU finance ministers asked the troika to work out proposals for extending the repayment periods on the bailout loans received by Ireland and Portugal on Tuesday. Hundreds of thousands of people had protested against the austerity measures in Portugal on Saturday. The left-liberal daily Irish Independent considers it unlikely that Ireland will see similar protests: » more

The EU finance ministers asked the troika to work out proposals for extending the repayment periods on the bailout loans received by Ireland and Portugal on Tuesday. Hundreds of thousands of people had protested against the austerity measures in Portugal on Saturday. The left-liberal daily Irish Independent considers it unlikely that Ireland will see similar protests: "In Portugal today there are mass protests because the people feel they live within a dictatorship, like their votes don't matter because any new government will still have to enact austerity policies. Since 2011, Portugal's government - like Ireland's - has decreased consumer demand and pushed unemployment to record levels of 17 percent. ... In Ireland, however, unemployment is dropping; Ireland's bond yields, reflecting the cost of borrowing for the State, are dropping; and we are close to closing the budget gap between spending and taxes. The question for policy makers is: are there ways to alleviate Ireland's austerity fatigue before the people turn on their rulers?"

Commenting on the protests staged by hundreds of thousands of Portuguese on Saturday the liberal business paper Diário Económico observes that the anger of the people, stricken by the crisis and unemployment, is growing and warns the government to finally heed their demands: » more

Commenting on the protests staged by hundreds of thousands of Portuguese on Saturday the liberal business paper Diário Económico observes that the anger of the people, stricken by the crisis and unemployment, is growing and warns the government to finally heed their demands: "The closure of businesses is frightening the people, because regardless of their political leanings they know that without businesses there can be neither employment nor prosperity to bring the country forward. The people are angry because they see unemployment rising and because the young have no career prospects despite their qualifications. They are angry because they are forced to watch tens of thousands leave the country to seek a future that no longer exists in Portugal. The government must react and give businesses the capacity to invest more, so that they can produce more, export more and create more jobs. … The government can't remain indifferent to the suffering of hundreds of thousand of people and its own country."

Hundreds of thousands of people took to the streets in Portugal on Saturday to demand an end to the austerity policy and call for the ... » more

Hundreds of thousands of people took to the streets in Portugal on Saturday to demand an end to the austerity policy and call for the resignation of the government. They accuse it of putting unquestioning obedience to the troika above the interests of the people. The liberal-conservative daily Diário de Notícias is impressed to see "that this protest has brought together people of all ages, social classes and professional groups. … The Portuguese took to the streets to say that they have had enough of austerity. With this protest breathing down his neck Finance Minister Gaspar will come to Brussels for another war over figures and deadlines with our EU partners, and they will have noticed by now that even their model pupil is showing signs of impatience. The EU's finance ministers will discuss postponing the debt repayment deadlines for Portugal and Ireland. Gaspar may return empty-handed - which won't do anything to limit the dissatisfaction in the country."

Migration from southern to northern Europe is helping to stabilise the Eurozone, journalism Helena Garrido writes in the liberal daily Jornal de Negócios: » more

Migration from southern to northern Europe is helping to stabilise the Eurozone, journalism Helena Garrido writes in the liberal daily Jornal de Negócios: "There is a Eurozone of full employment and one of unemployment. ... What has happened to the jobs that the single market was supposed to create? Some were lost, gobbled up or worn away by the financial crisis. ... Others were created in the Eurozone's creditor countries - they are the big winners of this crisis. The lack of employment in part of the Eurozone, the south and Ireland, and its opposite in the North shows that many warnings given during the euro construction phase were justified. But no one wanted to listen, never mind discuss them. And now look: immigration has become a means of personal survival and is contributing to the social and political recovery of the Eurozone. ... The euro will one day thank these immigrants who mitigated the problems of those who stayed at home and thus reduced the danger of a social and political implosion."

The troika formed by the IMF, the EU Commission and the ECB began its seventh evaluation of Portugal's reform efforts on Monday in Lisbon. The liberal daily Público makes a vehement call for Portugal's economic adjustment programme to be revised: » more

The troika formed by the IMF, the EU Commission and the ECB began its seventh evaluation of Portugal's reform efforts on Monday in Lisbon. The liberal daily Público makes a vehement call for Portugal's economic adjustment programme to be revised: "The programme has failed miserably. Portugal is caught in a downwards spiral and the adjustment targets are simply unreachable. ... It's time to give up the illusions. ... The programme must be reformulated, corrected and finally adjusted to reality. Any attempt which overlooks the seriousness of the situation, any decision which fails to review the stipulated terms, reveals a lack of courage and far-sightedness. The austerity policy won't alter the recession scenario. But if this nightmare can't be ended one should at least attempt to open up a loophole that offers the country a glimmer of hope."

Social protests like those in Bulgaria could well spread to other EU countries if the pressure from the streets goes unheeded, the liberal-conservative daily Adevărul cautions: » more

Social protests like those in Bulgaria could well spread to other EU countries if the pressure from the streets goes unheeded, the liberal-conservative daily Adevărul cautions: "These events clearly show how unsuitable some economic programmes proposed by the troika for the crisis-stricken countries of Eastern Europe have been. No one has wanted to face up to the fact that too many - and too harsh - austerity measures can constitute the biggest obstacle to economic development. The national and European decision makers must understand how important it is not only that the money from the structural funds continues to be paid out with the new 2014-2020 EU budget, but also that the procedures are simplified to give countries easier access to these funds. Failing that, the danger that events like those in Bulgaria will spill over into other countries will only grow. And that will lead to the loss of investor trust, destroying what we've accomplished so far on our European path."

Spain's statistics institute presented new record unemployment figures for 2012 on Thursday, showing that almost six million people are without work in the country. Further government reforms and renunciation of pay by employees are the only way out of the crisis, the conservative business paper Expansión argues: » more

Spain's statistics institute presented new record unemployment figures for 2012 on Thursday, showing that almost six million people are without work in the country. Further government reforms and renunciation of pay by employees are the only way out of the crisis, the conservative business paper Expansión argues: "The government must promote growth through structural reforms, and companies and employees must make the most of the flexibility the labour market reform has given them. At the negotiating table, keeping and creating jobs must always be the top priority, in exchange for more flexibility in the organisation of work, whether it means freezing and reducing salaries or modifying shifts, working times or work mobility. The fight against unemployment requires action from the government, the regions, the parties, the entrepreneurs and all society."

In view of Germany's huge influence in the European debt crisis, sociologist Ulrich Beck coins the term Merkiavelli to compare the German Chancellor's power politics with the teachings of philosopher Niccolò Machiavelli - whose The Prince was written 500 years ago - in the left-liberal daily El País: » more

In view of Germany's huge influence in the European debt crisis, sociologist Ulrich Beck coins the term Merkiavelli to compare the German Chancellor's power politics with the teachings of philosopher Niccolò Machiavelli - whose The Prince was written 500 years ago - in the left-liberal daily El País: "Many see Angela Merkel as the uncrowned queen of Europe. If we examine where the German chancellor draws her power from, we stumble on a typical feature of her behaviour: her almost Machiavellian versatility. The ruler, according to Niccolò Machiavelli, the first thinker on power, must only keep the promise made yesterday if it secures him an advantage today. ... However the Merkiavelli method may gradually be reaching its limits; after all, Germany's austerity policy has so far failed to be successful - on the contrary: the debt crisis now threatens Spain and Italy, and soon perhaps even France. ... Germany must decide between Europe being or not being. It has simply grown too powerful to have the luxury of not making any decisions."

A series of attacks has rocked the Greek capital in the last few days. Among other things shots were fired at the headquarters of the ruling Nea Demokratia party and a bomb exploded in a shopping mall. The conservative daily Kathimerini warns against a country torn by conflict: » more

A series of attacks has rocked the Greek capital in the last few days. Among other things shots were fired at the headquarters of the ruling Nea Demokratia party and a bomb exploded in a shopping mall. The conservative daily Kathimerini warns against a country torn by conflict: "In the coming months everyone must take care to ensure that Greece doesn't slide into a violent internal conflict that renders the country ungovernable. Every time Greece's situation stabilises and the danger of collapse and a return to the drachma recedes, 'invisible' hands and voices of hatred rise up and dark powers try to push us into the abyss. ... The tone in parliament, on TV - everywhere - must become milder. Terrorism has become an important topic, and we should not face it divided. ... We need stability and normality. If we convey the image of a country in a constant state of crisis and uncontrollable stress, the economy will never recover and clearly no foreigners will invest here."

Columnist Wolfgang Münchau has claimed in the leading article of the Monday edition of the Financial Times that Prime Minister Mario Monti's austerity policy has led Italy into a recession. The fairytale about the evil austerity policy is becoming more and more popular, the economists Alberto Alesina and Francesco Giavazzi lament in the liberal-conservative daily Corriere della Sera: » more

Columnist Wolfgang Münchau has claimed in the leading article of the Monday edition of the Financial Times that Prime Minister Mario Monti's austerity policy has led Italy into a recession. The fairytale about the evil austerity policy is becoming more and more popular, the economists Alberto Alesina and Francesco Giavazzi lament in the liberal-conservative daily Corriere della Sera: "So budgetary discipline is supposed to be the reason for the ongoing recession and the high unemployment. … Even the International Monetary Fund is warning Europe to go easy on fiscal discipline now. Wolfgang Münchau is singing the same tune and comparing Mario Monti with Heinrich Brüning, the last chancellor of the Weimar Republic whose attempt to fix the national budget allegedly brought about the end of the last democratic experiment before the Nazis seized power. … As in other countries, a relaxed budget policy would not have led to more growth but simply increased the risk premiums on government bonds and perhaps triggered a debt restructuring and undermined the banks' finances. It would have conjured up a another crisis year like 2008. … It's amazing that the Financial Times would publish such rubbish."

Portugal's government has fine-tuned the tax increases that were introduced at the beginning of the year and announced a restructuring of the tax brackets on Monday. The liberal business paper Diário Económico describes how all Portuguese are now making frenzied calculations to work out how much they will have left over after taxes: » more

Portugal's government has fine-tuned the tax increases that were introduced at the beginning of the year and announced a restructuring of the tax brackets on Monday. The liberal business paper Diário Económico describes how all Portuguese are now making frenzied calculations to work out how much they will have left over after taxes: "Never have the Portuguese been as preoccupied with income tax as they have been at the start of this year. Everyone is busy making calculations to find out how much of their pay they will lose at the end of the month. … Most will have to put up with a considerably lower net income. Then there's the increases in the cost of rent, transport, energy, telecommunications and food and finally the cuts in social benefits. Saddled with this unprecedented tax burden, the citizens and the companies will have to tighten their belts another notch. Consumption will go down considerably and the economy will continue its downwards trend."

Unidentified persons attacked the headquarters of the Greek ruling party Nea Dimokratia on Sunday night, firing several shots at the building. The headquarters of other parties also came under attack on the weekend. The liberal-conservative daily Diário de Notícias warns that such symbolic protests can get out of control: » more

Unidentified persons attacked the headquarters of the Greek ruling party Nea Dimokratia on Sunday night, firing several shots at the building. The headquarters of other parties also came under attack on the weekend. The liberal-conservative daily Diário de Notícias warns that such symbolic protests can get out of control: "Fortunately no harm came from the shots fired at the Nea Dimokratia headquarters. But they have a major symbolic significance - as can be seen with the suicides in Spain. ... More and more frequently we are witnessing acts of growing desperation that should be taken note of with the necessary social sensitivity before they turn into something even worse. The fierce protests in Spain and Greece as well as the relatively peaceful rallies in Portugal above all serve to vent frustration. ... It is no coincidence that the security level for Portugal's politicians has been increased. We will not be far from a state of affairs like that in Spain and Greece if our government continues to show such insensitivity on social issues."

IMF chief economist Olivier Blanchard recently admitted that the IMF underestimated the negative repercussions of austerity in Europe. Jens Berger writes on his blog Nachdenkseiten that it's time the IMF dealt seriously with the consequences of its miscalculation: » more

IMF chief economist Olivier Blanchard recently admitted that the IMF underestimated the negative repercussions of austerity in Europe. Jens Berger writes on his blog Nachdenkseiten that it's time the IMF dealt seriously with the consequences of its miscalculation: "Whatever else one can say, it does represent a step forward that IMF chief economist Blanchard at least admits having made a mistake. ... Nonentheless a simple mea culpa isn't enough here. The IMF is part of the notorious troika that gives its thumbs up or thumbs down to economic and fiscal policy in the European crisis states and negotiates the 'memoranda' with these countries that set out clear political guidelines. The catastrophic unemployment in the crisis countries is a direct consequence of the troika's political demands. The IMF's economists don't advise politicians, they determine policy. And when the IMF now admits that with its miscalculations it laid out not just an erroneous but even a counterproductive policy, and in so doing plunged entire economies into disaster, a simple 'sorry' is not enough."

The International Monetary Fund has calculated that highly indebted Portugal will need to cut public spending by another four billion euros. According to a report published on Wednesday, cuts in the areas of education and healthcare as well as pensions are necessary. The liberal daily Público accuses the government of evading its responsibilities: » more

The International Monetary Fund has calculated that highly indebted Portugal will need to cut public spending by another four billion euros. According to a report published on Wednesday, cuts in the areas of education and healthcare as well as pensions are necessary. The liberal daily Público accuses the government of evading its responsibilities: "It is not the government that is launching the most profound and complex reform the country faces, but unknown financial experts. … This is why we are discussing a document that is too technical and unrealistic instead of a politically and socially viable report. It's a ticking time bomb because it targets the structure of groups like the police, pensioners and teachers. … But the IMF didn't just invent these figures and everyone knows that this is the political and ideological programme that the government would also like to introduce. … Even if the recommendations are questionable, this diagnosis is useful. It shows beyond question that many things must change in our state for Portugal to become a healthy place with a future once more."

The tax hikes introduced at the beginning of the year mean that the Portuguese are now paying more taxes than the European average, according to a study published by the auditor network KPMG. The liberal business daily Jornal de Negócios fears that the country could collapse under the weight of its tax burden: » more

The tax hikes introduced at the beginning of the year mean that the Portuguese are now paying more taxes than the European average, according to a study published by the auditor network KPMG. The liberal business daily Jornal de Negócios fears that the country could collapse under the weight of its tax burden: "The KPMG study is overwhelming: the Portuguese will face a heavier tax burden than the Germans, French, English and Spanish in 2013 - both on income and on pensions. The government is fixing the budget at the expense of the taxpayers (and destroying the country in the process). … Portugal is like one huge tax authority nowadays. In the next cabinet reshuffle Prime Minister Passos Coelho may as well reduce his government to the minimum, trimming it down to just himself as finance minister and his department for taxes and duties. All for the sake of cutting costs, of course!"

The International Monetary Fund underestimated the negative impact of the austerity policy on the economic performance of the Eurozone's crisis-stricken economies and intensified the crisis as a result, the IMF's chief economist Olivier Blanchard conceded in a working paper released last week. The liberal daily Gazeta Wyborcza says the affected countries themselves are mainly to blame for the mess they're in: » more

The International Monetary Fund underestimated the negative impact of the austerity policy on the economic performance of the Eurozone's crisis-stricken economies and intensified the crisis as a result, the IMF's chief economist Olivier Blanchard conceded in a working paper released last week. The liberal daily Gazeta Wyborcza says the affected countries themselves are mainly to blame for the mess they're in: "This conclusion is pretty unusual. Because up to now the IMF has been well-known for its tough stance and often criticised for it. It has given states emergency loans. But in exchange it demanded reforms and cuts. In many parts of the world people bare their teeth when the word 'IMF' is mentioned. … A good example is Greece. However ultimately the Greeks themselves are to blame. They got the country up to its ears in debt and faked statistics for years on end in a bid to conceal the poor state of their public finances."

László Andor, European Commissioner for Employment, Social Affairs and Inclusion, presented the EU report Employment and Social Developments in Europe 2012 on Tuesday. While Northern Europe is doing comparatively well, unemployment in Southern Europe is climbing to record highs and the risk of poverty is growing. The gap between the North and the South is the consequence of an ideological austerity policy, the liberal state-run newspaper Wiener Zeitung notes and calls for a change of direction: » more

László Andor, European Commissioner for Employment, Social Affairs and Inclusion, presented the EU report Employment and Social Developments in Europe 2012 on Tuesday. While Northern Europe is doing comparatively well, unemployment in Southern Europe is climbing to record highs and the risk of poverty is growing. The gap between the North and the South is the consequence of an ideological austerity policy, the liberal state-run newspaper Wiener Zeitung notes and calls for a change of direction: "It is no longer about the socialist accumulation of debts or the neoliberal privatising frenzy. These are more like silly political games. The issue at hand is Europe's prosperity. It's no longer a matter of securing it, it's about making sure it doesn't slip even further. Net incomes in Europe have gone down in the past two years. This means that millions of citizens can afford less. The national governments are called on to put their budget targets on the back burner. And the EU Commission should focus on developing a comprehensive industrial policy instead of taking small steps towards liberalisation in bus and railway transport. The challenge now is to create jobs in Europe once more, jobs from which people can earn a living. This should be the ideological guideline - indeed the only one."

For the Spaniards the economic crisis has worsened in 2012. The conservative People's Party, which has been in power for just over a year, is increasing the potential for conflict in society, the left-liberal business paper Cinco Días warns: » more

For the Spaniards the economic crisis has worsened in 2012. The conservative People's Party, which has been in power for just over a year, is increasing the potential for conflict in society, the left-liberal business paper Cinco Días warns: "Spain has always been a country with relatively high structural unemployment and low productivity levels, so that despite salaries that are comparatively low in a European comparison its products were hardly competitive. Faced with the international economic crisis and without the possibility of devaluing its currency, Spain has reacted with the simplest response: it cut wages, raised all the taxes it could and introduced an austerity policy that entails heavy curtailments on civil rights owing to the ideology of this government. ... If the government continues with its absolutist and arrogant attitude it will only fuel the social tensions and turn the protests into a permanent situation for which it alone will be responsible."

The US rating agency Standard & Poor's raised Greece's credit rating by 6 levels on Tuesday to B-, which corresponds to a speculative investment. For the conservative daily Naftemporiki it's too early to rejoice because the reality is far gloomier: » more

The US rating agency Standard & Poor's raised Greece's credit rating by 6 levels on Tuesday to B-, which corresponds to a speculative investment. For the conservative daily Naftemporiki it's too early to rejoice because the reality is far gloomier: "For things to take a turn for the better, social benefits, workers' rights and tax breaks must be sacrificed. ... Who can tell with certainty how those people will react who still hold a job but whose incomes will shrink at the end of the year because of the cuts and tax hikes? And what can one say about the endurance and patience of the increasingly large army of the unemployed, whose numbers are expected to continue to rise in the coming months? At the moment no one can say where events are taking us. The coin is still in the air. The good news is at odds with the reality on the ground. But we will soon see how the coin falls. "

According to a prognosis made by the Kiel Institute for the World Economy, 2.2 million Europeans will move from the crisis-stricken south of the continent to Germany by 2017. This may be good news for the Germans but it will only exacerbate the problems in the countries of origin, the conservative daily Lidové noviny: » more

According to a prognosis made by the Kiel Institute for the World Economy, 2.2 million Europeans will move from the crisis-stricken south of the continent to Germany by 2017. This may be good news for the Germans but it will only exacerbate the problems in the countries of origin, the conservative daily Lidové noviny: "Today seven million foreigners live among the 80 million people in Germany, including 1.7 million Turks. But the new immigrants are not like the previous ones. Germany is looking for engineers, technicians, mathematicians and doctors. People who can settle here with their families and with their income build up a life in the middle class. … The Germans are mainly on the lookout for qualified people from Spain or Italy. Germany's recruiting efforts offer unemployed southern Europeans the hope they lack in their own countries, where up to 58 percent of the young people have no possibilities for earning an income. But without an educated middle class the societies of the south of the Continent will have a hard time overcoming their crises."

The Hungarian parliament approved the national budget for 2013 on Tuesday. Banks and large companies in particular must contend with new tax hikes. Hungary's government hopes to spare society with its austerity policy but instead it is stifling the country's economic motor, economist Péter Felcsuti points out in the left-liberal weekly Magyar Narancs: » more

The Hungarian parliament approved the national budget for 2013 on Tuesday. Banks and large companies in particular must contend with new tax hikes. Hungary's government hopes to spare society with its austerity policy but instead it is stifling the country's economic motor, economist Péter Felcsuti points out in the left-liberal weekly Magyar Narancs: "We must pay a high price for preserving the social peace. The problem is not so much that those companies that have to pay special taxes pass on the costs to their customers. It is also that they are no longer willing to invest, to expand their capacities, to improve the quality of their products or create new jobs. … The consequence is that general paralysis of the economy we call recession. As a result there is no money left for culture, education or healthcare, not to mention sport. And the country gradually goes to the dogs."

According to figures published by the Greek trade union association's labour institute (INE) the purchasing power of the Greeks has gone down by 50 percent this year. What will Christmas, which has increasingly been defined by consumption in recent years, be like for them this year? columnist Maria Katsounaki asks in the conservative daily Kathimerini: » more

According to figures published by the Greek trade union association's labour institute (INE) the purchasing power of the Greeks has gone down by 50 percent this year. What will Christmas, which has increasingly been defined by consumption in recent years, be like for them this year? columnist Maria Katsounaki asks in the conservative daily Kathimerini: "How merry will the mood be with less consumption? How willing are we to say goodbye completely to the idea of presents? ... What will take their place? Even these questions are pure luxury for some Greeks. ... According to a study by the INE labour institute, half of the Greek population is living on the poverty line with an annual income of less than 4,871 euros. How do Christmas and poverty go hand in hand if for decades the bubble of bliss and exaggerated consumption have defined well-being through the purchase of (alleged) assets? Love, solidarity, inventiveness, imagination and alternative solutions would be a way out, to prevent us from falling into depression during the holy festivities. But why do all these attempts seem like ersatz food? ... This Christmas we have some difficult tasks to solve."

The British Chancellor of the Exchequer George Osborne on Wednesday presented the budget for 2013. The conservative paper The Daily Telegraph fears that young job seekers will be hardest hit by the planned austerity measures: » more

The British Chancellor of the Exchequer George Osborne on Wednesday presented the budget for 2013. The conservative paper The Daily Telegraph fears that young job seekers will be hardest hit by the planned austerity measures: "There was precious little in George Osborne's Autumn Statement on Wednesday to hearten them. The Chancellor's political positioning was deft, as ever. But the economic outlook contained in his forecasts is dire. Britain has now been plunged into a Japanese-style 'lost decade'; the average wage in 2018 will be the same as in 2008. And that's if all goes as planned. Even these figures don't account for the worst of it: youth unemployment is at a scandalous 963,000. It is becoming a national emergency."

The EU Commission presented a plan for fighting youth unemployment on Wednesday, calling on EU member states to guarantee education or work for people under 25. A ray of hope for Europe's crisis-stricken youth, writes the socialist daily Duma: » more

The EU Commission presented a plan for fighting youth unemployment on Wednesday, calling on EU member states to guarantee education or work for people under 25. A ray of hope for Europe's crisis-stricken youth, writes the socialist daily Duma: "Europe's 'lost generation' already includes 7.5 million young people who neither work nor study. A situation like this, in which young people see no prospects for their future is unacceptable. ... It is high time to tackle this problem, because the social exclusion of the young will have catastrophic repercussions. If we don't invest in the development and training of young people, we leave it to fate to decide our future. Hopefully the measures of the EU Commission won't remain just an empty promise, because otherwise we will be in for hard times. It is the responsibility of each and every one of us to give young people a chance to develop and live better, more fulfilled lives."

Almost one in four EU citizens faces the threat of poverty or social marginalisation, according to Eurostat figures released on Monday. The left-wing daily Avgi warns of the consequences of neo-liberal politics: » more

Almost one in four EU citizens faces the threat of poverty or social marginalisation, according to Eurostat figures released on Monday. The left-wing daily Avgi warns of the consequences of neo-liberal politics: "The figures conceal thousands of human tragedies and a social or even humanitarian disaster. Unemployment, households without a single working person in a job, helpless old people without medication or access to a reliable healthcare system, minimum wages, youths without a future, … thousands of families who can't pay their heating and electricity bills, undernourished people and above all children. … This Europe is being driven by aggressive capital and tolerated by political forces that have subscribed to the neo-liberal austerity policy. This is not the future of general prosperity the Europeans had dreamed of after the two world wars. And soon it could turn out that because of uncontrolled nationalism not even the future peace of Europe is guaranteed."

The wave of protest against the political class and the government in Slovenia reached a new high point on Monday. Thousands of people took to the streets in several cities to vent their frustration. According to the online portal Žurnal24 the Slovenians' patience is at an end: » more

The wave of protest against the political class and the government in Slovenia reached a new high point on Monday. Thousands of people took to the streets in several cities to vent their frustration. According to the online portal Žurnal24 the Slovenians' patience is at an end: "The politicians have attempted in vain to discredit the demonstrators, first as mercenaries of the opposition, then as rioters. ... But the goals of the protests are becoming increasingly clear. First they targeted corrupt politicians, now they're directed against politics itself, and increasingly against capitalism. The next step could be a call for social alternatives. The protests may die down, but everything depends on whether they continue or not. No one knows how this will all end. But one thing is certain: the genie is out of the bottle, and the people will not go on suffering in silence. Anything can happen now."

In Italy Pierluigi Bersani has been voted the leading candidate of the centre-left alliance for the parliamentary elections, to be held in spring 2013. Bersani announced that if he wins the austerity program would remain in place, but he would aim to do more to stimulate economic growth. The liberal daily Diário de Notícias hopes Bersani will find a way to put up some resistance to Angela Merkel: » more

In Italy Pierluigi Bersani has been voted the leading candidate of the centre-left alliance for the parliamentary elections, to be held in spring 2013. Bersani announced that if he wins the austerity program would remain in place, but he would aim to do more to stimulate economic growth. The liberal daily Diário de Notícias hopes Bersani will find a way to put up some resistance to Angela Merkel: "Bersani's election points to next year bringing changes in several areas of EU policy, particularly in the Eurozone. His alliance is currently leading the polls, and the Italians seem no longer willing to accept a Berlusconi government. ... If Bersani becomes head of government this would promote political changes in the major economies of the Eurozone and liberate them from Berlin's semi-dictatorship. Because then it would no longer be only Hollande's France and Rajoy's Spain that question (each in their own way) the strategy imposed by Merkel. Particularly since the austerity policy has failed to produce the desired results. ... Perhaps the time has come to reach out for the goal of economic success in a different way, by adjusting politics to this purpose."

The left-liberal online paper To Vima fears the consequences of implementing the austerity policy agreed with the creditors: » more

The left-liberal online paper To Vima fears the consequences of implementing the austerity policy agreed with the creditors: "Now Greece must fulfil its duties in practice. … The austerity measures will worsen the recession and push society even closer to the abyss, boost support for the extremist political parties, increase unemployment and plunge a large part of the population into misery. It will turn out that several measures are not feasible because many of the prognoses are based on a budget that doesn't take account of the actual revenues. The implementation of the so-called structural reforms so closely observed from abroad will prove particularly difficult. They will meet with stiff opposition from Greek society and in many cases the process will resemble a looting. ... The government will be confronted with this every time something is privatised."

Without a second debt haircut for Greece, the plan for reducing the country's debt won't be worth much, the liberal-conservative business paper Il Sole 24 Ore notes: » more

Without a second debt haircut for Greece, the plan for reducing the country's debt won't be worth much, the liberal-conservative business paper Il Sole 24 Ore notes: "The attempt to reduce Greece's debt burden to a sustainable level without undertaking a second debt writedown is a Sisyphean task. And yet still the hard-liners of the North, led by Berlin, are preventing a writedown because they don't want to accept a potential loss of capital. … Three years of austerity have still not reduced Athens' debt. Instead the country threatens to drift from an economic crisis into a political and social one, particularly since extremist positions are gaining increasing support among the population. The Greeks are sick of hovering on the brink of disaster and waiting for a definitive solution, as they have done for the past 36 months. To further postpone the decision on Greece until after the parliamentary elections in Germany in September 2013 - this is what would be truly no longer 'sustainable'."

In the first pan-European general strike on November 14, tens of thousands of people demonstrated against the harsh austerity measures in their countries. The protests could be the seedlings of a "European Spring", sociologist Ulrich Beck hopes in the left-liberal daily La Repubblica: » more

In the first pan-European general strike on November 14, tens of thousands of people demonstrated against the harsh austerity measures in their countries. The protests could be the seedlings of a "European Spring", sociologist Ulrich Beck hopes in the left-liberal daily La Repubblica: "The social question has become a European question to which there is no national answer. Whether this view prevails will be decisive in the future. ... What is needed is an alliance among the different social movements: Europe's Unemployed Generation and the trade unions on the one side, and the architects of Europe in the European Central Bank, the political parties, the national governments and the European Parliament on the other. This would create a new, powerful movement. ... This movement could win two further allies: firstly, and paradoxically, the agents of the global markets who, faced with a clear commitment to a social Europe, rekindle their confidence in Europe and start investing in it once more. And secondly the increasingly nationalist and xenophobic populations of the debtor states, who in the clear understanding that it serves their own interests could become active for the project of a social and democratic Europe. For a European Spring."

Several metropolitans of the Greek Orthodox Church have publicly declared their support for the neo-fascist party Golden Dawn. In the left-liberal daily Ta Nea, Kostis Papaioannou, a member of the Greek Commission for Human and Civil Rights, calls on the Church's leadership to take a clear stance against right-wing extremism: » more

Several metropolitans of the Greek Orthodox Church have publicly declared their support for the neo-fascist party Golden Dawn. In the left-liberal daily Ta Nea, Kostis Papaioannou, a member of the Greek Commission for Human and Civil Rights, calls on the Church's leadership to take a clear stance against right-wing extremism: "It is very important - for society as a whole and for the Church in particular - to oppose right-wing extremism. Otherwise a couple of decades from now the Church will have to justify its behaviour, as it did with its attitude towards the military dictatorship. The lack of a joint official statement by the Church leadership cannot be justified with the argument of political neutrality. We don't expect the Church to get involved in party-political rivalries, but simply to adopt a fundamental stance on common values. ... Opposing Nazism and paganism is not interfering in politics. Rather it is an important duty of an institution which has the spiritual and social standing of the Church."

After a trip to Portugal the human rights activist Carla Hilbr del Pozzo describes in the daily Le Temps how moved she is by the profound social crisis in the country: » more

After a trip to Portugal the human rights activist Carla Hilbr del Pozzo describes in the daily Le Temps how moved she is by the profound social crisis in the country: "The bitterness felt toward the government and the EU is clearly palpable. The middle class is dying out. Many stores have closed, and there are significantly fewer customers in the ones that are still open. ... Of course reforms and sacrifices are necessary. But how tightly can the people cinch their belts and still remain human? More and more people are disputing that the austerity policy is having positive results. On November 14 an unlimited general strike in Portugal, Spain, Italy and Greece was a cause for solidarity among millions of angry people. Meanwhile tens thousand of soldiers who were deployed in Lisbon claimed they would not take action against the demonstrators. Are we facing a revolution in Europe? ... What will the future look like once we've destroyed our world with our own hands? Will Switzerland remain unscathed? And for how long? Is this a crisis or the end of an era?"

After Wednesday's general strike, Fabio Gándara, lawyer and activist with the "Indignant" movement, calls for new forms of protest and encourages unions to rethink their tactics in his blog for the left-liberal online daily Huffington Post: » more

After Wednesday's general strike, Fabio Gándara, lawyer and activist with the "Indignant" movement, calls for new forms of protest and encourages unions to rethink their tactics in his blog for the left-liberal online daily Huffington Post: "The unions could make their strikes more efficient if they pushed through ideas like consumer strikes, targeted walkouts in specific setors and collective demonstrations. The option of consumer strikes offers far more citizens the possibility of participating, and for that reason is gaining weight in new movements like that of the Indignant. Going on strike shouldn't just mean not working, but one also not consuming. It's paradoxical when a demonstrator first berates a shop owner for strike breaking and then goes for a couple of beer in the bar next door. ... The best thing would be for strikes always to be accompanied by mass demonstrations staged by a community and not dominated by the logos of the various unions. Instead we need the demands and symbols of a united society that is rising up against injustice and inequality."

The Spanish government passed a moratorium on Thursday providing two-year protection for needy families - low-income families or those with many children - against forced evictions pursuant to mortgage payment defaults. While it is necessary to support needy families the stability of the banks must not be jeopardised, the conservative daily La Razón warns: » more

The Spanish government passed a moratorium on Thursday providing two-year protection for needy families - low-income families or those with many children - against forced evictions pursuant to mortgage payment defaults. While it is necessary to support needy families the stability of the banks must not be jeopardised, the conservative daily La Razón warns: "In principle the moratorium seems well suited to provide a solution for families in dire straits. Nevertheless we must not lose sight of the bigger issue and make hasty decisions in an area where equilibrium and planning dependability are vital. Because such a move could cause collateral damage that would be very difficult to counteract. The financial system for granting mortgages is based on sound legal security. ... It is important to protect destitute households, yes. But it is just as important to preserve the rights of all parties and maintain the equilibrium of the mortgage system."

Hundreds of thousands of people went on strike in five EU States on Wednesday to protest against their governments' strict austerity policies. Riots broke out ... » more

Hundreds of thousands of people went on strike in five EU States on Wednesday to protest against their governments' strict austerity policies. Riots broke out in Spain, Portugal and Italy. The general strikes were economically irresponsible and are not the harbingers of an enduring protest movement, commentators write, lamenting the escalation of violence.

The Greek Constitutional Court declared a citizenship law that was approved by the socialist government in 2010 unconstitutional on Tuesday. Under the law second-generation immigrants whose parents had been living legally in Greece for at least five years can apply for Greek citizenship. The Albanian-born columnist Gazmend Kapllani criticises in his blog that Greek policies are promoting the ideology of the neo-Nazi party Golden Dawn: » more

The Greek Constitutional Court declared a citizenship law that was approved by the socialist government in 2010 unconstitutional on Tuesday. Under the law second-generation immigrants whose parents had been living legally in Greece for at least five years can apply for Greek citizenship. The Albanian-born columnist Gazmend Kapllani criticises in his blog that Greek policies are promoting the ideology of the neo-Nazi party Golden Dawn: "With his decision the council of state has ratified the 'philosophy of the modern national bankruptcy'. The social and constitutional model he proposes is officially that of Apartheid. So why are we surprised to see that Golden Dawn has gained so much support and is massacring people on the street? … In a country where children are taught that you cannot be Greek if you are not born to Greek parents, and where this is anchored in the country's constitution, it's only natural that in times of crisis Golden Dawn's ideology about the 'purity of the race' is gaining ever more supporters."

Wednesday's declarations of solidarity were just a flash in the pan because the crisis is simply too complex for a lasting protest movement, the liberal daily NRC Handelsblatt asserts: » more

Wednesday's declarations of solidarity were just a flash in the pan because the crisis is simply too complex for a lasting protest movement, the liberal daily NRC Handelsblatt asserts: "The proletarians of the different countries have not united. This old fashioned terminology betrays the answer to the question of why this has not occurred. The crisis is a financial crisis. The bank bailout operations and the stimulus policies of the governments managed to cushion the impact of the financial crisis for a few years, but since this has plunged them into debt major problems are now surfacing. Reorganising companies and increasing productivity are only a partial solution to the recession. The crisis is affecting almost every citizen through their mortgages, their pensions or their unemployment benefit. The different factors are intertwined to such an extent that an Occupy-style movement cannot provide relief, or even satisfaction. So the strike day yesterday was not a harbinger of sustained protests but merely a signal of discontent."

For the first time since the crisis began, the protest rallies in Portugal have turned violent. The liberal daily Público laments this development: » more

For the first time since the crisis began, the protest rallies in Portugal have turned violent. The liberal daily Público laments this development: "The situation in front of the parliament building resembled very much that on Syntagma Square in Athens or Cibeles Square in Madrid. Not long ago we were assured that the country would be able to cope with far more austerity measures. A certain section of the population however no longer seems willing to keep showing the same patience and resignation it has in the past 18 months. The government, the trade unions and the security forces that stoically endured the provocations for hours on end will be able to distinguish between those who protested while adhering to the rules and a peripheral group that deliberately set out to cause confrontations. … Without political answers to the growing social tensions we will no doubt have to live with repetitions of such images which until recently seemed an impossibility on our streets."

To weaken the already critical economic situation with a general strike is irresponsible, the conservative business paper Expansión writes, but adds that following the mass demonstration it is now up to the government to revise its policy: » more

To weaken the already critical economic situation with a general strike is irresponsible, the conservative business paper Expansión writes, but adds that following the mass demonstration it is now up to the government to revise its policy: "We are living through a genuine depression. Our public debt has doubled since 2007. Our banks are not doing the job they are meant to do: lending the money they have in their safes, preferring to wait for better times. … Calling a general strike in such a situation is a useless temerity. Nevertheless the observations made above should not prompt us to trivialise what has happened. The general strike is not an alternative to the current problems. The government must propose a project attractive enough to convince the unions and other groups that still cling to the myth of the general strike to participate in the common enterprise that Spain should be."

The tough austerity measures aimed at fighting the crisis won't solve the problems in the crisis-stricken countries, the left-liberald daily Delo comments in view of the protests across Europe: » more

The tough austerity measures aimed at fighting the crisis won't solve the problems in the crisis-stricken countries, the left-liberald daily Delo comments in view of the protests across Europe: "The crisis countries that were able to take out cheap loans in the past decade or neglected their reforms must do their homework now. Demonstrations and strikes won't solve their economic problems. On the other hand the so-called euro saviours should be honest with themselves. Even at the IMF, the bastion of neoliberalism in the eyes of its critics, people are realising that exaggerated austerity is detrimental. The pressure from the streets and the demands of the financial markets may destabilise the political situation in the individual states and also poison relations within Europe. … The current approach to crisis management is characterised less by solidarity and justice than by an unfair distribution of the burden and dictates from abroad."

Employees in Spain and Portugal are protesting against their governments' austerity policies with a coordinated general strike today, Wednesday. There are also plans for strikes ... » more

Employees in Spain and Portugal are protesting against their governments' austerity policies with a coordinated general strike today, Wednesday. There are also plans for strikes today in Italy and Greece. Commentators in the crisis states see the strikes as a historic declaration of solidarity against the ruthless austerity terms to which the governments of Southern Europe have submitted.

The number of participants in the strike in Portugal will send an important signal to the country's politicians, Daniel Oliviera stresses in the left-leaning blog Arrastão: » more

The number of participants in the strike in Portugal will send an important signal to the country's politicians, Daniel Oliviera stresses in the left-leaning blog Arrastão: "Everything that matters is at stake: the right to work, the public education and healthcare systems, the reforms, social cohesion, the survival of the poorest and democracy. Anyone who doesn't take part in today's strike will hardly have any reason to join in any other strike. A strike that paralyses the country could send an even stronger signal than the demonstration of September 15. But also if not so many people join in, the strike will still send a message because it would strengthen a weakened government that is massacring the people with its radical austerity drive. Moreover, this is the first time that a strike is being staged in several southern European countries simultaneously - and therefore it also sends a signal to Europe. If the strike is effective elsewhere but generates only a weak response here, this means that we feel comfortable in the role of the model pupil [who unquestioningly submits to the austerity terms]."

Just a week after taking office the Dutch government has adjusted its austerity package following fierce protests. The right-wing liberal Prime Minister Mark Rutte and his social democratic partner Diederik Samsom are scrapping plans to increase health insurance payments by up to 400 percent. For the left-liberal daily De Volkskrant the government has clearly got off to a bad start: » more

Just a week after taking office the Dutch government has adjusted its austerity package following fierce protests. The right-wing liberal Prime Minister Mark Rutte and his social democratic partner Diederik Samsom are scrapping plans to increase health insurance payments by up to 400 percent. For the left-liberal daily De Volkskrant the government has clearly got off to a bad start: "Governments can only achieve real breakthroughs if they manage to reach a consensus that transcends all the differences in politics and society. … Trade unions, employers and the other major interest groups are allergic to dictates from Brussels. They want an outstretched hand and space to be involved in decisions. History teaches us that it pays off to give them the chance to do so. Rutte and Samsom have now clearly reversed their course. Their slightly arrogant macho tone has been replaced by one of seriousness and humility."

This is the first pan-European strike, writes Ignacio Fernández Toxo, the president of Spain's largest trade union CCOO, on the online newspaper eldiario.es's blog Zona Crítica: » more

This is the first pan-European strike, writes Ignacio Fernández Toxo, the president of Spain's largest trade union CCOO, on the online newspaper eldiario.es's blog Zona Crítica: "For the first time in the history of Europe's trade unions, employees in Portugal, Greece, Italy and Spain will strike simultaneously. The European Trade Union Confederation declared the Day of Action and Solidarity in protest at the austerity policies and cuts that are leading to recession and mass unemployment above all in the countries in the south of the continent. In our country there are many reasons to strike. The conservative government of the People's Party has decided to adopt a pioneering role within Europe's Right, implementing along with Greece and Portugal the harshest programme of spending cuts and social welfare cutbacks. It is incapable of standing up to the German chancellor and disobeying her orders."

The coordinated strike is an important declaration of solidarity in these times of ruthless austerity, the left-liberal daily La Repubblica applauds: » more

The coordinated strike is an important declaration of solidarity in these times of ruthless austerity, the left-liberal daily La Repubblica applauds: "Admittedly in this moment of deep recession the strike may be regarded as a blunt weapon, or even the 'privilege' of those who still have work. But the opposite is true: this strike mobilises employees who are hard hit by the prevailing austerity policy. This goes above all for the youths who see the measures not as a necessary purgatory that will eventually bring them to heaven but as an eternal hellfire. … One day people will realise that the push to reduce debt has been taken to crazy extremes. And they say international solidarity doesn't make sense in such a situation? It is gradually dawning on us that the amputation of Europe which began in Greece won't spare Northern Europe. It's normal for this view to take root first among the trade unions and then among the parties."

At least the social plight is causing the employees in the European debtor states to join forces for a united cause, the conservative daily Kathimerini comments approvingly: » more

At least the social plight is causing the employees in the European debtor states to join forces for a united cause, the conservative daily Kathimerini comments approvingly: "Unfortunately the unemployment rate is also very high in Portugal, Spain and Ireland - so it's not just affecting the 'disobedient' Greeks. In these countries too, young people find themselves forced to emigrate. There too, the austerity policy is destroying the welfare state. There too, people regard Merkel with distrust. … There too, people are organising one demonstration after another, as if they had been infected by the 'Greek virus'. In these countries too there has been a whole series of suicides, like those in Spain because of the evictions. The differences among the crisis-hit Pigs states no longer exist. On the contrary, they all face the same problems and are all being tyrannised by external forces, so they must coordinate their efforts. They must do what their governments are avoiding doing. Because in Greece's case the government is cooperating with Germany rather than with its natural allies in Southern Europe."

German Chancellor Angela Merkel will make her first official visit to Portugal today. Unions and citizens' initiatives have announced massive protests to her visit. The business paper Jornal de Negócios understands why Merkel is regarded as a punching ball by many Portuguese but points out that the country's current predicament is the product of decades of mismanagement: » more

German Chancellor Angela Merkel will make her first official visit to Portugal today. Unions and citizens' initiatives have announced massive protests to her visit. The business paper Jornal de Negócios understands why Merkel is regarded as a punching ball by many Portuguese but points out that the country's current predicament is the product of decades of mismanagement: "Angela Merkel is neither responsible for our public debt nor for the way the country has been managed in the past decades. … And yet she attracts national anger like a magnet. This is clearly a result of the troika's reform programme, which has put us on the path to poverty. Merkel's visit therefore provides a perfect opportunity to verbalise the accumulated frustration. All the emotions are thwarting common sense. But the chancellor is not completely innocent in her role as cathartic scapegoat. She is responsible for the lack of a coherent and concerted EU policy. … She is not a victim of the circumstances because she is one of the protagonists who have led the EU into this dark labyrinth."

Europe's political leaders should finally heed economist John Maynard Keynes in their efforts to save the euro, writes economics professor Svend E. Hougaard Jensen in the liberal daily Berlingske: » more

Europe's political leaders should finally heed economist John Maynard Keynes in their efforts to save the euro, writes economics professor Svend E. Hougaard Jensen in the liberal daily Berlingske: "After World War I Keynes became worried about the political consequences of the external demands (coming above all from Britain) for austerity in Germany, and the resulting unemployment. Today, too, the austerity policies being called for by Germany (!) may become so brutal that it will be difficult to establish governments in the political centre with broad popular support. When all we hear is demands for across-the-board austerity and the economic policy instruments at hand are extremely limited, political power does not seem very attractive at all. ... Greece is an interesting case here: without the possibility of determining its own monetary policy, depreciating its own currency or preventing capital flight, and confronted at the same time with calls for austerity, the door for extremist political powers is wide open. And these call the basic pillars of our current social model into question."

Around eight weeks after the parliamentary election, Queen Beatrix swore in Belgium's new social-liberal coalition government led by Prime Minister Mark Rutte on Monday in The Hague. The government's inauguration was accompanied by fierce protests against the planned austerity measures. But there simply is no alternative, the liberal daily NRC Handelsblad warns: » more

Around eight weeks after the parliamentary election, Queen Beatrix swore in Belgium's new social-liberal coalition government led by Prime Minister Mark Rutte on Monday in The Hague. The government's inauguration was accompanied by fierce protests against the planned austerity measures. But there simply is no alternative, the liberal daily NRC Handelsblad warns: "We must not forget that this is a government in times of crisis. You can't cut spending and increase taxes to the tune of 16 billion euros without it affecting the citizens. The Dutch will lose a sizable portion of their buying power in the coming years as well as all kinds of benefits they have come to take for granted. The biggest losers are probably those whose jobs will soon be cut. Unemployment benefit is being limited to two years and in the second year the amount received goes down to the level of social security benefit. These are dramatic losses. ... But the government's top priority must be to fight the economic crisis."

Under the pressure of nationwide strikes the Greek parliament plans to hold a ballot on the new 13.5 billion austerity package on Wednesday. The junior partner in Antonis Samaras' government, the left-liberal party Dimar, wants to abstain. The business paper Imerisia calls on the politicians to approve the measures: » more

Under the pressure of nationwide strikes the Greek parliament plans to hold a ballot on the new 13.5 billion austerity package on Wednesday. The junior partner in Antonis Samaras' government, the left-liberal party Dimar, wants to abstain. The business paper Imerisia calls on the politicians to approve the measures: "Samaras' dramatic warning about the need to close ranks in Europe and protect the country 'from disaster' accurately reflects the situation. ... In these critical hours the political system must assume its responsibility. The future of the country depends on the votes of these MPs; they will determine the economic course and social cohesion for the coming decades. When the future of the country is at stake, the fate of this or that party means little. If the economy goes bankrupt they too will collapse anyway."

Thousands of people gathered before the parliament building in Lisbon on Wednesday to protest against the austerity budget for 2013, which was approved on first reading in parliament. This is a sign that German Chancellor Angela Merkel's first visit to Portugal on November 12 won't be a pleasant occasion for either side, the liberal-conservative daily Diário de Notícias writes: » more

Thousands of people gathered before the parliament building in Lisbon on Wednesday to protest against the austerity budget for 2013, which was approved on first reading in parliament. This is a sign that German Chancellor Angela Merkel's first visit to Portugal on November 12 won't be a pleasant occasion for either side, the liberal-conservative daily Diário de Notícias writes: "It's clear that Portugal must not miss this rare opportunity to bring up the country's enormous problems, as well as point out that it won't be able to hold out for long under the present circumstances. No matter how you look at it, given the current state of the EU it won't be possible to overcome the crisis without and against Berlin - regardless of the fact that the budgetary discipline enforced by Merkel was a huge swindle and a monumental error."

Hundreds of people took part in protests in the Slovenian city of Maribor on Monday, demanding the resignation of Prime Minister Janez Janša's government. The unions have called for a major demonstration in the capital Ljubljana on November 17. For the left-liberal daily Delo the government has gambled away the people's trust: » more

Hundreds of people took part in protests in the Slovenian city of Maribor on Monday, demanding the resignation of Prime Minister Janez Janša's government. The unions have called for a major demonstration in the capital Ljubljana on November 17. For the left-liberal daily Delo the government has gambled away the people's trust: "These protests are above all a rebellion against the government, which is losing the people's trust. ... Its opponents have now grown to the size of an army. ... There is no doubt that reforms must be carried out, and that they should aim at the right targets. But the precondition for their implementation is a broad political consensus and trust in the government. Unfortunately the government is achieving exactly the opposite because it clings to solutions that are tailored to certain interest groups - like the make-up of the management board of the state holding company."

The cause of the Greek economic crisis is to be found in Europe's identity crisis, columnist Zeza Zikou writes in the conservative daily Kathimerini: » more

The cause of the Greek economic crisis is to be found in Europe's identity crisis, columnist Zeza Zikou writes in the conservative daily Kathimerini: "It is an identity crisis, a crisis of confidence, a crisis of representative democracy, a leadership and vision crisis, a crisis that has grown from a conflict of interests. The nation states are in conflict with the 'central planners' of the current neo-liberal world in Brussels and the International Monetary Fund (IMF) and also with the financial capital that acts globally, aggressively and unrestrainedly. The state leaders have proven themselves to be far weaker: lacking a philosophy, respect for history, sensibility. Their actions are helplessly determined by their own personal obligations and mental stereotypes. This crisis also seems to be a field test for democracy and political culture, not just in Greece but all over Europe. The visible disharmony between society and politicians, the lack of legitimacy, the failure of the technocrats, the crisis of representation, the rise of new, aggressive nationalisms and the onslaught of hate stereotypes are affecting not just the weak and repeatedly battered Greece, but all Europe."

François Hollande stressed in his interview that "we cannot impose a life-long sentence on nations which have already made considerable sacrifices if people do not perceive the fruits of their efforts". The liberal daily Público praises the French president for these words: » more

François Hollande stressed in his interview that "we cannot impose a life-long sentence on nations which have already made considerable sacrifices if people do not perceive the fruits of their efforts". The liberal daily Público praises the French president for these words: "It is not just an ethical statement about the austerity policy but also a realistic assessment of its impact. The austerity budget presented to us for 2013 is indeed a 'lifelong prison sentence'. The tax burden will only intensify the financial crisis, undermine political stability and rob the Portuguese of all faith in the 'fruits of their efforts'. Hollande's statement must be seen as part of a strategy aimed at establishing a balance of power in the EU. His proposals for the introduction of euro bonds won't be implemented in the short term. But his call for Germany to change its priorities is a great help to countries in difficulties."

Trade unions in Greece have called a general strike for today against the Greek government's new austerity programme. The news portal Protagon doubts the success of the numerous strikes in Greece: » more

Trade unions in Greece have called a general strike for today against the Greek government's new austerity programme. The news portal Protagon doubts the success of the numerous strikes in Greece: "Between 1980 and 2008 there were 38 general strikes. Italy comes second with 16, then France with 10 and Portugal with 3. Does the large number of strikes in Greece mean we have trade unions that take a tough stance against employers? After so many years one can hardly reach that conclusion. It only shows that the trade unions are acting either without thinking or at the behest of the parties - or they are fighting to maintain their own privileges. … The strikers are only successful when they don't make unrealistic demands (like scrapping the austerity package). If the strikes exhaust the employees, leave them disappointed and on top of that are undermined by trade unionists with party affiliations, then in the end the employers are the only winners."

Portugal's Minister of Finances Vitor Gaspar on Monday announced drastic tax hikes as well as billions in cutbacks for the coming year. There were vehement protests in front of parliament against the measures, which both opposition and trade unions have harshly criticised. For the liberal business paper Diário Económico the budget is a joke no one can laugh about: » more

Portugal's Minister of Finances Vitor Gaspar on Monday announced drastic tax hikes as well as billions in cutbacks for the coming year. There were vehement protests in front of parliament against the measures, which both opposition and trade unions have harshly criticised. For the liberal business paper Diário Económico the budget is a joke no one can laugh about: "This budget is an insult to the Portuguese, a capitulation on the part of the government, a slap in the face for the middle class and a punch in the stomach for the civil servants and pensioners. Companies scratch their heads, the poor and penniless raise their arms to the heavens and for the jobless we must pray. This budget combines a hallucinatory realism with a touch of humour and surrealism by raising taxes for everything that moves. And when we stop moving, we're dead."

In no other country of the Eurozone is the income gap between poor and rich as wide as it is in Spain, the left-liberal daily El País reports with an eye to the latest Eurostat statistics, and warns that social peace is in jeopardy: » more

In no other country of the Eurozone is the income gap between poor and rich as wide as it is in Spain, the left-liberal daily El País reports with an eye to the latest Eurostat statistics, and warns that social peace is in jeopardy: "The situation would be less tragic if there were a strong social policy in these times. But the exact opposite is the case. In 2010 the welfare offices cared for over eight million people, roughly 20 percent more than the previous year. And this figure has no doubt risen sharply in 2011 and 2012. Now, however, funding is being slashed precisely when it is most urgently needed. Local governments will receive 40 percent less funding to deal with social emergencies in the coming year. And the social workers who haven't yet lost their jobs are up to their necks in work. Even in the worst crisis one can call on politicians to stop and think for a moment. It takes much time and effort to build up social solidarity. But destroying it is quick and easy."

IMF Chief Christine Lagarde has called on the Eurozone to give the crisis countries more time to fulfil the austerity terms. She admitted that the ... » more

IMF Chief Christine Lagarde has called on the Eurozone to give the crisis countries more time to fulfil the austerity terms. She admitted that the austerity policy was having a far more detrimental impact on the economy than expected. Some commentators welcome the IMF's about-turn and hope that the EU will take this message to heart. Others see Lagarde's initiative as a sign of perplexity at how to deal with the situation.

Portugal's government presented its plan for the 2013 budget on Thursday, which will by discussed by parliament on Monday. The centre-right government is making things ... » more

Portugal's government presented its plan for the 2013 budget on Thursday, which will by discussed by parliament on Monday. The centre-right government is making things too easy for itself with the planned cuts, the liberal business paper Diário Económico contends, saying the budget plan is "the formalisation of a series of highly destructive measures and a terrible threat to private households, companies, the economy and fragile social cohesion. It remains incomplete because it still attempts to compensate for a lack of cuts in government spending by increasing tax revenues, even though the tax burden is already at an almost untenable level. ... Collecting taxes is as easy as shooting ducks on a pond. Trimming down government spending is a different, far more difficult matter. ... The tolerance that the government expects from the Portuguese when it presents the definitive version of the austerity budget is hanging by a thread."

The Red Cross launched a campaign on Wednesday to gather donations to help the more than 300,000 Spaniards worst hit by the debt crisis. The liberal daily Lietuvos rytas has nothing but sarcasm for what is sees as the double standards behind the campaign: » more

The Red Cross launched a campaign on Wednesday to gather donations to help the more than 300,000 Spaniards worst hit by the debt crisis. The liberal daily Lietuvos rytas has nothing but sarcasm for what is sees as the double standards behind the campaign: "In Eastern Europe everything is just hunky dory. It's in the kitchens of the jolly Spaniards that there's real famine. If a José earns 627 euros not just the state but also the international organisations - like the Red Cross - leap to his aid. … Meanwhile poverty-stricken Lithuanians had to get by on less than 200 euros a month last year, and a family of four with two children under 14 on just 417 euros. And this even though food prices in Lithuania and Spain are pretty similar. … The poverty of the Spaniards is obviously of a more luxurious nature than that of the Lithuanians, and therefore more deserving of support."

The real crisis is only just beginning in Spain, Ignacio Escolar fears in his blog with the left-leaning online newspaper eldiario.es: » more

The real crisis is only just beginning in Spain, Ignacio Escolar fears in his blog with the left-leaning online newspaper eldiario.es: "What is the difference between Spain and Portugal? A year! To see our own future all we have to do is look to our neighbour: even tougher cuts, even more unemployment, even more suffering and an even harsher recession. 'The real crisis begins now', a manager at one of the big Ibex 35 companies told me recently. Her fear is that so far the crisis has only been a foretaste of what is to come, and that things will get really bad now. The latest prognoses of the IMF confirm her fears. ... Dismiss half of the public sector employees? Cut pensions? Increase VAT and income tax? Or levy a new tax on petrol and cut all the salaries in the private sector? All these measures were unthinkable until now. But in other countries fighting for survival they have either already been introduced or are under discussion. They will soon arrive in Spain."

German Chancellor Angela Merkel stressed during her visit to Athens on Tuesday that she wants Greece to remain in the Eurozone and promised the country ... » more

German Chancellor Angela Merkel stressed during her visit to Athens on Tuesday that she wants Greece to remain in the Eurozone and promised the country further financial assistance from Germany. Some commentators see her meeting with Greek Prime Minister Antonis Samaras as a courageous sign of solidarity. Others say warm words will placate financial markets but they won't help Greece.

Angela Merkel's professions of solidarity were just empty phrases, columnist Sheila Sitalsing mocks in the left-liberal daily De Volkskrant: » more

Angela Merkel's professions of solidarity were just empty phrases, columnist Sheila Sitalsing mocks in the left-liberal daily De Volkskrant: "Words are the water used to put out the fire in the euro crisis. That is: say the right words and the crisis abates for a while. The men who watch the markets interpret the words as meaning that the Greeks will receive the next envelope full of cash after all. Somewhere in the small print of the incomprehensible rules it says that things get boring when one of the players stops playing. The people wearing stick-on Hitler moustaches [the demonstrators in Greece] know that the money they get from the North to make them fulfil their obligations is just Monopoly money. They won't be able to buy many hamburgers with it. And they certainly won't get back their work, their pensions and their dignity. And so they hobble on. But Angela Merkel is showing solidarity."

Merkel's visit to Athens has no significance for the Greeks and can do nothing to help save the country, blogger Pitsirikos writes: » more

Merkel's visit to Athens has no significance for the Greeks and can do nothing to help save the country, blogger Pitsirikos writes: "Thousands of Athenians demonstrated yesterday, as if it were Merkel who had elected this government and not them. But that's what we Greeks are like. We blame the Germans and the immigrants for our country's bankruptcy, as if they'd been in cahoots to destroy us. ... Merkel wants Greece to remain in the Eurozone. But it looks very much as if she's making fun of us, because any logically-minded person realises that Greece must leave the Eurozone on the double. Merkel's visit doesn't mean a thing. And when she comes next time or the time after that to officially and definitively conclude the sale of the country, no one will react and everyone will be submissive and well-behaved. Auf Wiedersehen, Mrs Merkel."

Angela Merkel has shown courage and sent the right signals, the liberal business paper Financial Times writes: » more

Angela Merkel has shown courage and sent the right signals, the liberal business paper Financial Times writes: "She has also answered two opposing camps of critics at home: the Social Democrats on the left, who argue she has been too hard on the Greeks; and her coalition partners on the right who believe she has not been tough enough. It is a difficult balancing act that the German chancellor has managed with some skill in recent months as Europe's debt crisis intensified. She gambled when she backed the European Central Bank's bond-buying programme, despite opposition from Jens Weidmann, Bundesbank president and did so again in flying to Athens. As for Mr Samaras, he now has to recognise the risks that Ms Merkel has taken. Only by swiftly completing the new austerity package and implementing long overdue structural reforms will he prove to still-sceptical Germans that Greece can be a trustworthy partner in Europe's recovery."

Merkel and Samaras have demonstrated in Athens that the fates of their countries are inextricably bound together, the news portal tagesschau.de notes with relief: » more

Merkel and Samaras have demonstrated in Athens that the fates of their countries are inextricably bound together, the news portal tagesschau.de notes with relief: "The Chancellor has guts. She could have met head of government Antonis Samaras and his cabinet on Crete, Rhodes or Santorin instead. Some faraway island in the sea. But she went right into the lion's den. It had to be the capital. This sends a strong message - the right message! ... The German-Greek friendship has come under severe strain. The bond which took decades to grow threatens to collapse, to go down the drain, as the saying goes. And the main reason for this is money. ... Shared money needn't cause a friendship to end. Europe is more than an idea or a community of interests. Today Europe is more than ever a community with a shared destiny. Samaras and Merkel have sent a strong message of solidarity in Athens."

German Chancellor Angela Merkel travels to Greece today for the first time since the start of the euro crisis. The visit is accompanied by a ... » more

German Chancellor Angela Merkel travels to Greece today for the first time since the start of the euro crisis. The visit is accompanied by a wave of protest, with thousands demonstrating against the chancellor's crisis policy and the Greek government in Athens on Monday evening. Even if Merkel's intention is to underline her determination to keep Greece in the Eurozone, the country's problems are far from over, commentators warn.

The fact that thanks to massive security measures Angela Merkel will be visiting a ghost town today can't conceal that Athens is simmering with discontent, the left-liberal daily La Repubblica warns: » more

The fact that thanks to massive security measures Angela Merkel will be visiting a ghost town today can't conceal that Athens is simmering with discontent, the left-liberal daily La Repubblica warns: "Frau Merkel won't be confronted with stray dogs and people looking for food in rubbish bins. ... But the comparison with the late Weimar Republic [made by Samaras in a speech last week] was not unjustified. ... The irrepressible rise of the Nazi party Golden Dawn has been driven by a dangerous combination of unemployment and national humiliation. Foreigners are being used as scapegoats. ... Greece's eastern border is hundreds of kilometres long and countless islands off the Turkish coast make the country an obvious destination for refugees. ... The Dublin Regulation obliges Greece to prevent refugees from crossing the EU borders. ... Coping with the enormous wave of refugees is Greece's deposit vis-à-vis Europe. But so far only the Golden Dawn party has benefited from it at all."

Portugal's government announced a new programme aimed at reducing the public deficit on Wednesday. To avoid a controversial increase in social contributions, the tax on income, capital and property will be raised instead. The liberal business daily Jornal de Negócios criticises the government for an unimaginative approach: » more

Portugal's government announced a new programme aimed at reducing the public deficit on Wednesday. To avoid a controversial increase in social contributions, the tax on income, capital and property will be raised instead. The liberal business daily Jornal de Negócios criticises the government for an unimaginative approach: "It is the desperate act of a government whose strategy has failed and which hasn't even considered other measures. When the deficit target seemed unachievable Prime Minister Passos Coelho lost his head and announced a rise in social contributions, destroying the political and social peace that had existed. … Faced with disaster, the government rummaged around in its bag of tricks looking for other options. … Taxes, taxes, taxes. … It is an appeal to the Portuguese. There is a small chance of salvation, but it will be lost if the nation is not prepared to play along. ... So will we all strive to maintain social cohesion, as [Finance Minister Vitor] Gaspar hopes will be the case?"

The Spanish Ministry of the Interior announced on Wednesday that it will launch an inquiry into the conduct of several police officers during a demonstration held before the parliamentary buildings on September 25. Video footage on the Internet shows that there were violent clashes between police officers and other citizens at the Atocha train station some distance from the demonstration. In the online newspaper eldioario.es Blogger Ignacio Escolar voices doubts that the investigation will be thorough: » more

The Spanish Ministry of the Interior announced on Wednesday that it will launch an inquiry into the conduct of several police officers during a demonstration held before the parliamentary buildings on September 25. Video footage on the Internet shows that there were violent clashes between police officers and other citizens at the Atocha train station some distance from the demonstration. In the online newspaper eldioario.es Blogger Ignacio Escolar voices doubts that the investigation will be thorough: "The facts are well-known; the videos pretty conclusive. The security forces fired shots in the train station, dealt blows to passengers on the platforms and threatened members of the press. But the violent demonstrators - which there were - weren't even in the station. … I don't have high hopes for this 'internal investigation', which has already been downgraded to 'routine'. Given that the Interior Minister Jorge Fernández has already praised the police officers for their 'extraordinary work' and awarded a medal and a life salary to the officer who led the operations, it's unlikely that this investigation will produce clear results."

Hundreds of thousands of Europeans have protested against their governments' crisis policies in recent weeks. The journalist Wawrzyniec Smoczyński writes in the left-liberal news portal Polityka Online that the euro crisis is evolving into a social crisis: » more

Hundreds of thousands of Europeans have protested against their governments' crisis policies in recent weeks. The journalist Wawrzyniec Smoczyński writes in the left-liberal news portal Polityka Online that the euro crisis is evolving into a social crisis: "Why now of all times? Because as in Poland, the governments in all of Europe have now presented their budget statements for the coming year. With a sizable dose of harsh measures like cuts and tax hikes. In this way the budgets will be balanced, as is stipulated by the EU fiscal compact which will come into effect in 2013. In addition, the economic recession is now morphing into a social crisis. That means unemployment is rising and the fear of the future is constantly growing. The next unavoidable stage involves political tensions. The majority of Southern Europeans have recently elected new governments. As a consequence, the anger is being vented on the street [and not at the polls]: In Spain, Catalan separatism is growing ever louder, and in Greece support for the neo-Fascists - like that for the extreme Left in France - is growing."

Unemployment in the Eurozone has reached a record high: according to Eurostat in August 18.2 million Europeans were without a job - the highest figure since the introduction of the single currency. The left-liberal Berliner Zeitung sees a chance in the crisis: "Despite the many opportunities for good training, in particular young people can't gain access to the labour market. So where's the good news? We hear the numbers and digest them in the European context. The debt crisis has helped us to see more than just the national markets. And when people speak Spanish on the subway they aren't just tourists on an educational trip. These days a European consciousness is emerging from the bottom up. This is another thing the facts from Brussels tell us."

Thousands of French citizens demonstrated in Paris on Sunday against François Hollande's austerity policy and the EU fiscal pact, the ratification of which the French ... » more

Thousands of French citizens demonstrated in Paris on Sunday against François Hollande's austerity policy and the EU fiscal pact, the ratification of which the French National Assembly will begin debating on Tuesday. Commentators urge France to agree to the pact and call on Hollande to introduce labour market reforms as well as austerity measures.

Thousands of people protested in France, Spain and Portugal this weekend against their governments' austerity policies. Only if the crisis countries stick together can they defend themselves against the austerity dictates of the Germans, the liberal-conservative daily Diário de Notícias writes: » more

Thousands of people protested in France, Spain and Portugal this weekend against their governments' austerity policies. Only if the crisis countries stick together can they defend themselves against the austerity dictates of the Germans, the liberal-conservative daily Diário de Notícias writes: "The first demonstration of the Hollande era has shown that the French haven't forgotten the marriage of convenience between Sarkozy and Merkel. … We heard appeals for solidarity among the crisis countries to prevent the destruction of the EU to which Berlin is leading us. … We must be clear about the fact that it won't help just to talk about political changes in Europe. It is a question of efficiency, particularly when Germany, as the EU's major net payer, is sitting on the other side of the negotiating table. But it's good to know that there are alternatives and that they can be implemented in the crisis countries if they all speak with one voice."

The Greek neo-Nazi party Golden Dawn plans to set up an employment agency dedicated to finding jobs for Greek citizens only. The left-liberal online paper To Vima is not surprised: » more

The Greek neo-Nazi party Golden Dawn plans to set up an employment agency dedicated to finding jobs for Greek citizens only. The left-liberal online paper To Vima is not surprised: "After opening soup kitchens just for Greeks, setting up blood donation groups for Greek patients only and persecuting immigrants, the Golden Dawn party has now announced plans to found an employment agency just for Greeks. It is counting on the unemployment rate, which has leapt because of the recession, to boost its 'social profile' - just as it has exploited the economic crisis to gain a foothold in politics. This is nothing new: the same recipe was already applied by Hitler, who based his policy on the humiliation suffered by the German people through the [harsh] terms imposed by the Treaty of Versailles, exploiting the economic misery of people living in Germany. He invested in the idea of racial purity and the persecution of the Jews to rise to power."

Portugal's Ethics Committee for Biosciences has come under fire for recommending in a report that the government cut spending on medications for the treatment of cancer and AIDS, as it was revealed on Thursday. The daily i hopes that compromises can be found for the necessary cutbacks: » more

Portugal's Ethics Committee for Biosciences has come under fire for recommending in a report that the government cut spending on medications for the treatment of cancer and AIDS, as it was revealed on Thursday. The daily i hopes that compromises can be found for the necessary cutbacks: "Basically the discussion is about the fact that the national health system should make cutbacks on certain medical examinations and medications … But what happens if a doctor could prescribe a better course of treatment, but it would violate the guidelines? What freedom does he have in these times of penny-pinching? These are questions that need to be openly discussed. … It's clear that there must be spending cuts in the national health system. But to convince the politicians to adopt a sensible approach here, we must keep our cool and let ourselves be guided by common sense. And we need information. So let us not start throwing stones at those who are trying to shed light on these problems."

The Spanish government presented its draft budget for 2013 on Thursday. But according to the conservative daily El Mundo the government based the budget on too many optimistic assumptions: » more

The Spanish government presented its draft budget for 2013 on Thursday. But according to the conservative daily El Mundo the government based the budget on too many optimistic assumptions: "When it approved the draft budget for next year yesterday, the cabinet made a risky bet: that tax revenues would rise by 3.8 percent despite the recession, growing unemployment and dwindling consumption. It's already very optimistic to assume that the economy will shrink by only 0.5 percent in 2013 even though the IMF predicted negative growth of 1.2 percent in July. But in addition the calculations are based on rising revenues from income tax and VAT that will be difficult to achieve. You get the feeling the government deliberately preferred to be optimistic in order to avoid further budget cuts and unpopular tax increases."

In Greece, Spain and Portugal angry citizens are demonstrating against the austerity policies of their governments. In neighbouring Bulgaria, were people are far worse off, hardly anyone takes to the street to protest, the business magazine Manager notes and explains why: » more

In Greece, Spain and Portugal angry citizens are demonstrating against the austerity policies of their governments. In neighbouring Bulgaria, were people are far worse off, hardly anyone takes to the street to protest, the business magazine Manager notes and explains why: "The Bulgarians have so many reasons to protest that they don't know where to start. Whether it's the economy, the crime rate, the judiciary, social affairs, health or education: the problems are so huge and worrying that they have paralysed all society. On the one hand people have lost their patience, on the other they are drowning in self-pity at the fact that the state has sunk so low. Moreover everyone bears individual responsibility for their family, their sick parents and so on. ... And because many families have to fight for their own survival on a daily basis, the day of protest remains a distant prospect and the demonstrations are half-hearted and sporadic."

Hundreds of thousands of Greek and Spanish protesters have demonstrated in recent days against their governments' austerity policies. Dozens were injured in both countries during ... » more

Hundreds of thousands of Greek and Spanish protesters have demonstrated in recent days against their governments' austerity policies. Dozens were injured in both countries during street fighting between radical groups and the police. Commentators write that the failures of the euro rescue plans are now taking their toll, and that a turning point in the crisis has been reached.

Before the mass demonstrations in Spain and Greece thousands of people in Portugal had already taken to the streets to protest government austerity measures in Portugal last week. According to the liberal business paper Diário Económico, Europe's politicians are being made to pay for having chosen the wrong path for years: » more

Before the mass demonstrations in Spain and Greece thousands of people in Portugal had already taken to the streets to protest government austerity measures in Portugal last week. According to the liberal business paper Diário Económico, Europe's politicians are being made to pay for having chosen the wrong path for years: "Europe is experiencing a déjà-vu, the repetition of failed models. And we in the south who don't know how to behave and therefore must be taught a lesson are the donkeys, and are getting the stick without any prospect of a carrot. Frau Merkel can't be held responsible for the mistakes made by the Portuguese, Spanish and Greek governments in the past decade. But she can and should be called to account for the omissions of the past two years. ... The fragmentation of the Eurozone has been in full swing for two years but has now reached the point of no return - and this is not just on the markets, but also on the streets. This is dangerous, because on the streets there is no 'Super Mario' to save us all."

Europe's governments have failed to take into account how the citizens would react to their measures against the crisis, the liberal daily La Stampa points out: » more

Europe's governments have failed to take into account how the citizens would react to their measures against the crisis, the liberal daily La Stampa points out: "If governments believe they can adopt any kind of measure without considering their political durability and focusing solely on the economic advantages, they are very much mistaken. This political durability, determined by the reaction of the citizens, is a problem not just for the crisis-stricken countries. In France too, Hollande's popularity is waning as the unemployment level rises. And following the first signs of slowing growth in Germany the atmosphere in the Berlin ruling coalition is anything but idyllic. ... The world doesn't just consist of share prices on the stock markets, but also of housewives' shopping lists. It's an illusion to believe that the former will remain stable in the short and medium term when the latter are increasingly manifesting the impact of the crisis."

The Greeks can protest as much as they want, Berlin doesn't want to listen, the left-liberal online paper To Vima writes: » more

The Greeks can protest as much as they want, Berlin doesn't want to listen, the left-liberal online paper To Vima writes: "Berlin wants full political and economic control in Europe, but it doesn't want to pay for it. ... Berlin doesn't want to take monetary measures that may not be successful and it doesn't want to spend money. It's not interested in stimulus measures and it sees the repression and social discontent not as real problems but as a normal stage in the process of adaptation [of Greece to the EU]. And precisely this approach has already turned half of Europe into a ticking time bomb. … Almost the entire planet is asking Germany to implement effective measures to overcome the crisis, but Berlin refuses to do so. And why should the Germans do this when they're actually benefiting from this crisis? ... At least the Germans are making sure we're not alone [in Europe with our protests]. This is perhaps the only ray of hope, before all hope dies."

A general strike all but brought public life in Greece to a standstill on Wednesday. But according to the left-liberal Tagesspiegel many people in the country no longer even have the energy to demonstrate: » more

A general strike all but brought public life in Greece to a standstill on Wednesday. But according to the left-liberal Tagesspiegel many people in the country no longer even have the energy to demonstrate: "While many Greeks feel angry, others are resigned to the situation. But Prime Minister Antonis Samaras can't relax yet. ... On the weekend he must continue the difficult negotiations with the troika on the details of the austerity catalogue and bring them to a successful conclusion. Then there's the parliamentary vote on the austerity legislation - a nailbiting ballot for the government. If that all goes smoothly Greece can expect a green light for the payment of the next credit instalment of 31.5 billion euros. But even then the country won't be out of the dark. ... The economist Peter Bofinger is right when he says the troika is prescribing the crisis countries the 'wrong therapy'. What Greece really needs are impulses for growth to get the economy back on its feet. And to give people new hope."

Together with ten of his EU colleagues the German Foreign Minister Guido Westerwelle last week presented a paper outlining a "New Vision of Europe". It is nothing but the hollow phrases of political pygmies, the economist Ewald Engelen concludes scathingly in the left-leaning weekly De Groene Amsterdammer: » more

Together with ten of his EU colleagues the German Foreign Minister Guido Westerwelle last week presented a paper outlining a "New Vision of Europe". It is nothing but the hollow phrases of political pygmies, the economist Ewald Engelen concludes scathingly in the left-leaning weekly De Groene Amsterdammer: "A lot of babble about a common defence policy, border controls and more say for the citizens. ... But not a word is lost on the subject of how this is supposed to achieved or, more importantly, whether the citizens actually want this. And yet again all the focus is on fiscal discipline, budget rules and balanced finances. The fact that Brussels's crisis management is only making the already difficult situation (no growth) even worse is overlooked. One member state after another is plunging into a recession, public spending is being cut all over Europe, the austerity policy of one state is slowing down growth in another. And in this way all Europe is sinking slowly but surely into a swamp of self-imposed economic weakness."

The president of the Catalan regional government, Artur Mas, announced early elections for November 25 on Tuesday. A risky step because it is aimed at sounding whether the politician has the regional parliament's support in his fight for Catalonia's independence, the Catalan daily La Vanguardia concludes: » more

The president of the Catalan regional government, Artur Mas, announced early elections for November 25 on Tuesday. A risky step because it is aimed at sounding whether the politician has the regional parliament's support in his fight for Catalonia's independence, the Catalan daily La Vanguardia concludes: "The path Mas has chosen is not an easy one and he needs a very stable majority to stick to his course. The polls don't necessarily guarantee him that, and he knows it. He also realises that he may fail in his endeavour. Because his goal is not just a little more autonomy. He wants the complete realisation of the demonstration's motto: 'Catalonia, a new state in Europe'. This explains why all the parties within the regional parliament were up in arms yesterday. For in this new political situation no one can be sure how many votes this historic election will secure him."

The euro crisis has forced the Irish to come to terms with their country's complex ties with Europe, writes columnist Paul Gillespie on the blog of the London School of Economics: » more

The euro crisis has forced the Irish to come to terms with their country's complex ties with Europe, writes columnist Paul Gillespie on the blog of the London School of Economics: "The threefold crisis assailing Ireland's economy since 2008 - a banking collapse, a collapse of state revenues and a rapid fall in competitiveness - threw out a huge debt burden along with falling living standards, unemployment and returning emigration. The intense and wrenching sense of economic failure among elites and citizens alike was accentuated by a growing realisation that all paths led to Brussels for a solution, when the crisis turned from one of liquidity into one of solvency. ... Not surprisingly these large financial, economic and political imbalances and asymmetries exercised Irish public debates on the causes of and solutions to the crisis. They contributed to the widespread sense of injustice felt by ordinary citizens vis-à-vis the banks, regulatory institutions, business leaders, politicians and EU leaderships seen as responsible. Europeanisation and politicisation thereby went hand in hand as the country's fate became entangled with that of the larger European project."

While Spain is an increasingly popular destination for foreign tourists, considerably fewer Spaniards than in previous years went on holiday in their own country this summer. This proves that Spain needs more than austerity measures to overcome the crisis, the conservative daily El Mundo concludes: » more

While Spain is an increasingly popular destination for foreign tourists, considerably fewer Spaniards than in previous years went on holiday in their own country this summer. This proves that Spain needs more than austerity measures to overcome the crisis, the conservative daily El Mundo concludes: "Although this year may be one of the best in our history in terms of the number of foreign tourists who visited the country, domestic tourism has been badly hit by the crisis and is having a negative impact on a key sector of the Spanish economy. Yesterday we learned that the number of Spanish guests staying at hotels in the country fell by no less than 10.5 percent in the months of July and August. This is a clear sign of how much consumption is suffering in the crisis and of the need for structural reforms to get the economy back on its feet. Because with its austerity measures and tax increases the government is impoverishing families and preventing the economy from recovering."

Portugal's liberal-conservative government has scrapped plans to increase social contributions in 2013. After vehement protests against the measure on Friday the government announced that it would seek alternatives. The liberal business paper Diário Económico praises President Aníbal Cavaco Silva for calming the mood in the country by pulling strings behind the scenes: » more

Portugal's liberal-conservative government has scrapped plans to increase social contributions in 2013. After vehement protests against the measure on Friday the government announced that it would seek alternatives. The liberal business paper Diário Económico praises President Aníbal Cavaco Silva for calming the mood in the country by pulling strings behind the scenes: "At around 1 a.m. on Saturday morning the Council of State [the president's advisory committee] issued the measure's death certificate in the presence of an inconsolable minister of finances. ... Portugal's president thus solved in one go two problems that had been dragging the country down: the announcement of indirect salary cuts and the resulting political crisis that had threatened to tear the government apart. After two weeks of pointless manoeuvring Prime Minister Passos Coelho has been clever enough to turn a new page just in time. … Many challenges now await Passos Coelho. The first and most important is to make peace with the Portuguese. He still has a long way to go in this respect."

Greek families demonstrated against the government's austerity policy in front of the country's parliament buildings on Friday. In the course of the demonstrations they called on members of parliament from the neo-Fascist party Chrysi Avgi to leave the rally. The news portal Protagon.gr applauds their behaviour. "This spontaneous reaction on the part of the citizens leaves room for hope. ... The party's press spokesperson Ilias Kasidiaris and other members of parliament joined the protests to benefit from these families' worries and hardships. Kasidiaris had carefully prepared his appearance, only to be treated as he deserved: » more

Greek families demonstrated against the government's austerity policy in front of the country's parliament buildings on Friday. In the course of the demonstrations they called on members of parliament from the neo-Fascist party Chrysi Avgi to leave the rally. The news portal Protagon.gr applauds their behaviour. "This spontaneous reaction on the part of the citizens leaves room for hope. ... The party's press spokesperson Ilias Kasidiaris and other members of parliament joined the protests to benefit from these families' worries and hardships. Kasidiaris had carefully prepared his appearance, only to be treated as he deserved: 'Get lost, you fascist, we don't need you', the crowd called out. These people gave the neo-Nazi die-hards the right answer and refused to let them compromise their protest. The neo-Nazis looked like waterlogged rats. ... The people neither fought with the neo-Nazis nor provoked them. In fact they hardly spoke with them. Their weapon was a single sentence: 'Fascists, get lost!"

After the mass demonstration for the independence of Catalonia on September 11, Spain is discussing the consequences of the autonomous region's cessation from the Spanish centralist state. The left-liberal daily El País urgently warns against such a step: » more

After the mass demonstration for the independence of Catalonia on September 11, Spain is discussing the consequences of the autonomous region's cessation from the Spanish centralist state. The left-liberal daily El País urgently warns against such a step: "The nation states are forced to give up more and more of their competences and are anything but independent today. Increasingly they act like mediators for external powers or institutions which are mandated to preside over the shared sovereignty. ... If Catalonia were to unilaterally separate from Spain it would automatically no longer be part of the united Europe. Lengthy and difficult discussions would start over its admission, which some states - including Spain - could boycott with their veto. In the end that would lead to the gradual decline of both the Catalonian and the Spanish state. ... And independence would plunge the entire peninsula into poverty."

German Finance Minister Wolfgang Schäuble praised his Portuguese counterpart Vitor Gaspar during the latter's visit to Berlin on Wednesday for his implementation of the "painful economy drive". Portugal is merely a guinea pig being used to demonstrate the correctness of Germany's instructions, the liberal business daily Jornal de Negócios writes: » more

German Finance Minister Wolfgang Schäuble praised his Portuguese counterpart Vitor Gaspar during the latter's visit to Berlin on Wednesday for his implementation of the "painful economy drive". Portugal is merely a guinea pig being used to demonstrate the correctness of Germany's instructions, the liberal business daily Jornal de Negócios writes: "This government that was elected to save us from bankruptcy represents an ideological agenda that it is trying to implement in the context of the austerity dictates. Schäuble's praise for Gaspar's efforts, which was clearly aimed at more than just encouragement, highlights the ideological umbilical cord between the two. Portugal is serving as a laboratory where Germany can prove to the other derailed countries of Southern Europe that the German model is the only true model. And our government is busy putting it into practice. Portugal is to be turned into an export economy like Taiwan or Singapore, with low wages and an irrelevant domestic market - controlled by multinationals that value the country for its ultra-liberal business environment."

The sense of euphoria in Athens and Brussels after the German Constitutional Court's ESM ruling and the ECB's decision on government bond purchases gives the weekly Ependitis pause for thought. It stresses that the people of Greece neither share this enthusiasm nor believe that there will be a happy end to the country's debt crisis: » more

The sense of euphoria in Athens and Brussels after the German Constitutional Court's ESM ruling and the ECB's decision on government bond purchases gives the weekly Ependitis pause for thought. It stresses that the people of Greece neither share this enthusiasm nor believe that there will be a happy end to the country's debt crisis: "The euphoria is felt only on the surface of Greek society. But under that surface other feelings are simmering and turning into a dangerous cocktail of fatalism, anger, desperation and decay. … We're not just talking about strikes against the government's austerity measures. … What is more worrying is the deafening silence of the 23.6 percent of the population without jobs, of the people insured under the biggest health insurance scheme, the EOPYY, who [because the scheme is insolvent] are now at a dead end, and of the private-sector employees who are working part-time for less pay because of the unbelievable plans of the troika. … The government, and others, don't seem to be aware of what is happening under the surface - or they're simply not interested."

Lessons can be learned from the re-election of right-wing liberal Dutch Prime Minister Mark Rutte, the left-liberal daily Frankfurter Rundschau comments: » more

Lessons can be learned from the re-election of right-wing liberal Dutch Prime Minister Mark Rutte, the left-liberal daily Frankfurter Rundschau comments: "Rutte focused on economising, but also on development policy, tax breaks 'for hard-working Dutch' and a verbal anti-euro course. [The left-liberal alliance] D66 and its top candidate Alexander Pechtold were the only ones who called for more Europe during the campaign. ... What do the results of the Dutch election mean for Europe? German Chancellor Angela Merkel can look forward to continued cooperation with her right-wing liberal comrade-in-arms Mark Rutte - although nowadays he sounds even more Merkelist than the original. One message from the Netherlands for the chancellor is: not every government is automatically replaced in the euro crisis. Yes, you can even win elections with austerity policies. With an eye to Holland's economy the other message is: the crisis has now reached the north. That is a disquieting one."

Portugal's Socialists are no longer prepared to back the new austerity measures. The main opposition party announced on Thursday that it would vote against the proposed budget for 2013. The liberal business paper Diário Económico voices annoyance at the carelessness with which the government has lost a broad consensus on the austerity package: » more

Portugal's Socialists are no longer prepared to back the new austerity measures. The main opposition party announced on Thursday that it would vote against the proposed budget for 2013. The liberal business paper Diário Económico voices annoyance at the carelessness with which the government has lost a broad consensus on the austerity package: "Prime Minister Passos Coelho has managed to undermine the key prerequisite for the success of the austerity programme: fundamental political and social consensus. ... Not only did the government announce an audacious of economic policy, it is dabbling in political experiments that are difficult to comprehend: the political cohesion of the coalition is at risk, the support of the main opposition party has been lost and the Portuguese are taking to the streets. Passos Coelho has no choice. He must make adjustments to the announced measures and this will cause many problems. … The Portuguese accepted the austerity measures for 2012, integrated them into their daily lives and tolerated impoverishment. But now they want to see results."

Portugal's international creditors have granted the highly indebted country a year longer to fix its budget. Finance Minister Vitor Gaspar said on Tuesday that the budget deficit would not be brought down below the targeted three percent of GDP before 2014. But with its latest announcement of new austerity measures the government has lost the voters' support for good, the business paper Jornal de Negócios notes: » more

Portugal's international creditors have granted the highly indebted country a year longer to fix its budget. Finance Minister Vitor Gaspar said on Tuesday that the budget deficit would not be brought down below the targeted three percent of GDP before 2014. But with its latest announcement of new austerity measures the government has lost the voters' support for good, the business paper Jornal de Negócios notes: "The government has messed up everything. … If the prime minister called on us to join the battle now, who would follow him to the trenches? It is not our failure to achieve the deficit target that threatens the country's cohesion but the blind determination to implement the announced austerity measures. … The government has been wrong in all its prognoses. … Fortunately we have been granted a year's reprieve. But by postponing the targets the troika is helping itself, not Portugal, because it is partially responsible for this failure. An extra year means another year of harsh austerity dictates."

Following the Portuguese government's announcement of further austerity measures on Friday, the country's population still doesn't know exactly what to expect, the liberal-conservative daily Diário de Notícias complains: » more

Following the Portuguese government's announcement of further austerity measures on Friday, the country's population still doesn't know exactly what to expect, the liberal-conservative daily Diário de Notícias complains: "There are so many open questions and uncertainties that all kinds of different interpretations of the prime minister's words are circulating in the press. His silence on the subject of what sacrifices the rich will have to make has triggered enormous indignation. The extent of this anger is evident in the many commentaries and calls for street protests and general strikes on the social networks. When income is not redistributed and on top of that cuts are made, these decisions have to be explained - as precisely as possible - to those who are expected to make the sacrifices. … But nothing of the sort has been done. … The silence of the government is an enormous mistake and its echo can be heard - albeit only in conversations so far - on the street."

The number of beggars on the streets of Cyprus has spiralled since the outbreak of the crisis in Greece, the liberal daily Phileleftheros writes, comparing the situation with that of Greece in the 1980s: » more

The number of beggars on the streets of Cyprus has spiralled since the outbreak of the crisis in Greece, the liberal daily Phileleftheros writes, comparing the situation with that of Greece in the 1980s: "Back then you saw beggars in front of the churches, in the train stations and at bus stops. By contrast for the last three decades in Cyprus, the land of plenty, even more so than the word, the sight of beggars was practically unknown. True, there were very poor people, but you never saw beggars on the streets. But now, in the Cyprus of the 21st century, beggars have become part of daily life. The first were the gypsies, who came from the occupied territories in the north. But then the number of beggars rose dramatically. After the crisis in Greece, which has plunged a large part of the population into poverty and sparked a huge wave of emigration [to Cyprus], it is clear that begging in Cyprus has been Hellenised."

The Portuguese Prime Minister Pedro Passos Coelho announced on Friday that in a further step towards lowering the budget deficit the social insurance contribution for employees will rise from 11 to 18 percent while the companies' contribution is to drop from 23.75 to 18 percent. The left-liberal daily El País fear similar measures for Spain and warns of growing discontent among southern Europeans: » more

The Portuguese Prime Minister Pedro Passos Coelho announced on Friday that in a further step towards lowering the budget deficit the social insurance contribution for employees will rise from 11 to 18 percent while the companies' contribution is to drop from 23.75 to 18 percent. The left-liberal daily El País fear similar measures for Spain and warns of growing discontent among southern Europeans: "The measures being passed in Portugal will increase the inequalities in the sharing of the costs for the crisis and deepen the unequal distribution of income that already existed in both countries [Portugal and Spain] even before the crisis. The citizens' fatigue and the investors' scepticism make it necessary to reconsider the misunderstood austerity policies. At least one should consider distributing the measures over a longer period of time to avoid a depression. A depression that would not would not just affect the economic variables but also the mood and the people's sense of identification with European integration."

In Greece, the public prosecutor's office has launched an investigation against members of the former socialist Pasok government after a Greek former top official at the International Monetary Fund admitted that the IMF was aware that the country's austerity programme was impracticable. It would be better if the investigation were led by a parliamentary commission of inquiry, the conservative daily Kathimerinin contends: » more

In Greece, the public prosecutor's office has launched an investigation against members of the former socialist Pasok government after a Greek former top official at the International Monetary Fund admitted that the IMF was aware that the country's austerity programme was impracticable. It would be better if the investigation were led by a parliamentary commission of inquiry, the conservative daily Kathimerinin contends: "We need answers from those responsible for the financial mismanagement, and also from former prime minister Giorgos Papandreou, who didn't realise the gravity of the situation and despite clear warnings from his predecessor tragically failed to take the necessary measures. … The questions must be answered within parliament and perhaps with the help of a special commission of experts that can make an objective assessment of what went wrong. It is a mistake for the people to expect answers from public prosecutors and special courts."

In the vote on the European fiscal compact slated for the beginning of October in the French parliament, President Hollande faces the problem that not all the left-wing parliamentarians back him, notes the conservative Frankfurter Allgemeine Zeitung, saying there is little chance of a united Left front emerging in France: » more

In the vote on the European fiscal compact slated for the beginning of October in the French parliament, President Hollande faces the problem that not all the left-wing parliamentarians back him, notes the conservative Frankfurter Allgemeine Zeitung, saying there is little chance of a united Left front emerging in France: "The pressure to cut spending is regarded [by a number of left-wingers] as a dictate imposed by the Germans, as interference in French politics. For this reason party discipline has been imposed on the socialist MPs. The Greens and the Communists, who belong to the extended 'presidential majority', are acting coy. But this is just a foretaste of what will happen if the government doesn't manage to stop rising unemployment and prevent the social plans already announced by many companies. Now Hollande must fight against the very expectations he himself created during the election campaign."

The Estonian parliament ratified the ESM bailout mechanism on August 30. The news portal Delfi sees the decision as proof that Estonia has buckled under the criticism of Keynesian economist Paul Krugman, who had voiced scepticism regarding Estonia's economic recovery: » more

The Estonian parliament ratified the ESM bailout mechanism on August 30. The news portal Delfi sees the decision as proof that Estonia has buckled under the criticism of Keynesian economist Paul Krugman, who had voiced scepticism regarding Estonia's economic recovery: "According to Krugman, investors withdraw their capital from a country when economic uncertainty is on the rise. And economic uncertainty is growing in Estonia, despite - or perhaps because of - the fact that the Estonian government has done exactly what Krugman proposes. The parliament's decision on 30 August constitutes a complete capitulation on the part of President Ilves [who had hitherto advocated an austerity policy]. By contrast the people, who are out on the streets in protest [at the austerity measures] and who support the ESM, are like those in 1940 who believed in the gifts offered by the Soviet Union."

Despite rigid implementation of the austerity programme, according to experts Portugal will exceed the agreed deficit target for 2012 by a large amount. The left-liberal weekly Expresso calls for the country to abandon its austerity policy: » more

Despite rigid implementation of the austerity programme, according to experts Portugal will exceed the agreed deficit target for 2012 by a large amount. The left-liberal weekly Expresso calls for the country to abandon its austerity policy: "The troika would be happy and benefit if Portugal was doing better. If its formula for recovery was proving effective here it would have proof that the cure - if painful - guarantees success when the patient follows the doctor's instructions to the letter. … With a patient as compliant as Portugal there should be clear signs of recovery by now. But that's not the case. … Neither the government nor the troika are likely to be humble enough to admit that they were completely mistaken both in their diagnosis and their treatment. But we can at least expect them not to continue prescribing the same medicine. We may have become poor and faithless, but we're certainly not complete idiots."

Since the introduction of harsh austerity measures Greece has witnessed an increase in the number of violent, sometimes fatal attacks against immigrants and ethnic minorities, in which gangs of thugs belonging to the neo-Nazi party Chrysi Avgi, or Golden Dawn, are also involved. But Europe is content to just looking on impassively, the left-liberal daily The Independent complains: » more

Since the introduction of harsh austerity measures Greece has witnessed an increase in the number of violent, sometimes fatal attacks against immigrants and ethnic minorities, in which gangs of thugs belonging to the neo-Nazi party Chrysi Avgi, or Golden Dawn, are also involved. But Europe is content to just looking on impassively, the left-liberal daily The Independent complains: "As with many fascist groups, Golden Dawn claims to represent the marginalised working class. Like far-right groups across Europe - including the English Defence League and the new British Freedom Party - Golden Dawn declares itself the enemy of a bankrupt democratic system, exploiting for its own ends popular anger against neoliberal economic mismanagement. However, although it professes to stand against austerity, it has no economic project: its tactics are simply violent, divisive and nauseatingly racist. And the governments of Greece and Europe seem willing to tolerate this as the social cost of an ongoing austerity consensus."

That leading EU politicians have welcomed the election of the party Nea Dimokratia in Greece, which is tainted by corruption, highlights the decline of values in Europe, writes the political scientist Ioannis Tellidis on the blog of the London School of Economics and Political Science: » more

That leading EU politicians have welcomed the election of the party Nea Dimokratia in Greece, which is tainted by corruption, highlights the decline of values in Europe, writes the political scientist Ioannis Tellidis on the blog of the London School of Economics and Political Science: "If anything, the consolidation of democracy in the South through membership in the EU constituted the belief that the Union would be a mechanism of checks and balances against the ... machinations and violations of human rights that were experienced during dictatorships or politically precarious eras. With their current stance and support towards pro-austerity parties and policies that lead to further asphyxiation, misrepresentation and - crucially - loss of dignity, EU and German officials have seriously damaged their credibility and reliability - not just in Greece, but also in Ireland, Portugal and recently Spain. The EU could have shown its solidarity to the countries of the periphery, not by allowing things to stay the same, but by utilising the very values, objectives and ideals of the Union as incentives for the improvement of governance and governability in these countries."

A year after seeking help from the euro bailout fund Lisbon has not turned into another Athens, despite the fierce debates about the rigid austerity programme and concerns about social unrest, the left-liberal weekly Expresso concludes: » more

A year after seeking help from the euro bailout fund Lisbon has not turned into another Athens, despite the fierce debates about the rigid austerity programme and concerns about social unrest, the left-liberal weekly Expresso concludes: "So how are we doing? After a year there is no precise answer to this question. The only thing that seems to be certain is that we are worse off. It may be that we have pulled back a little from the edge of the abyss, but at the same time we know that we are still far from being on the path to sustainable development. In addition our fate depends on others. We will have to give up all we have to the state to pay off its alleged investments in our joint prosperity. But there is some good news, too: Our exports are doing well and we still live in social peace. But this is not thanks to the government. Instead of taking care of our future prosperity the state should simply try to repair the damage of the past. If it had already done this we could certainly have saved a lot of money."

The Yes vote by the Irish in the referendum on the EU fiscal compact last Thursday has shown how fragile Ireland's society is, writes the liberal daily the Irish Examiner: » more

The Yes vote by the Irish in the referendum on the EU fiscal compact last Thursday has shown how fragile Ireland's society is, writes the liberal daily the Irish Examiner: "[T]he way we apply austerity is by cutting services to those whose protests won't amount to more than a whimper, and by applying bureaucratic techniques to the delivery of what's left. We say no to those without a voice, and we whisper yes to those with power and influence. Despite everything, we've managed to preserve entitlement for some. So if we can't end austerity, let's put it to work instead, in ending entitlement and in ensuring fairer and more equal shares of a humbler cake. We've done what we can for the fragile economy. We must start concentrating, before it's too late, on our fragile society. At least let's start talking about it."

Ireland's discipline in dealing with the crisis sets an example for other European countries, writes the conservative daily The Times: » more

Ireland's discipline in dealing with the crisis sets an example for other European countries, writes the conservative daily The Times: "The rewards for Ireland's stoicism are beginning to appear. Business confidence is higher than at any point since the banking crisis, bucking the dismal trend across southern Europe. Exports are showing signs of growth. Bank deposits are safe and growing. In short, the Irish have prescribed harsh medicine for themselves and taken it, and in the process they have shown that austerity offers a plausible path to recovery. ... What Ireland has shown is that a financial crisis, though bloodless, can change the behaviour of ordinary consumers and mortgage borrowers if its true dimensions and implications are acknowledged. In Greece and Spain behaviour needs, likewise, to change. The Irish lesson is clear."

The discussion about euro bonds and a new growth offensive at today's EU summit is a sign of a gradual change in European economic policy according to the daily Público: » more

The discussion about euro bonds and a new growth offensive at today's EU summit is a sign of a gradual change in European economic policy according to the daily Público: "A new spectre is hovering over Europe and seems to indicate that Merkel's pointing finger and austerity policy will soon be a thing of the past. … The election in France was enough to make Europe think seriously about the path to chaos it has taken and suddenly start discussing potential alternatives. Let's not fool ourselves, the EU summit won't mark the end of the stringent austerity policy that is smothering the economy and driving up unemployment in Portugal. Nor will the idea of euro bonds be pushed through yet. So it's too soon to pronounce the victory of expansionist economic policy, but at least we can begin to believe that the sanctions imposed by Merkel on weaker countries are doomed to failure."

Encouraged by the victory in North Rhine-Westphalia, the social democrats (SPD) may now step up their resistance to Chancellor Angela Merkel and her European austerity policy, the liberal-conservative daily Neue Zürcher Zeitung fears: » more

Encouraged by the victory in North Rhine-Westphalia, the social democrats (SPD) may now step up their resistance to Chancellor Angela Merkel and her European austerity policy, the liberal-conservative daily Neue Zürcher Zeitung fears: "In Düsseldorf a policy model has won out that is diametrically opposed to Merkel's austerity course for the EU. Early new elections were necessary in North Rhine-Westphalia because the State Constitutional Court had applied the brakes on the SPD-Green coalition government's excessive new debts. Nevertheless state premier Hannelore Kraft was re-elected with a convincing show of support. It seems many Germans have also had enough of the appeals for austerity. For the SPD, which had lent its support to Merkel's euro bailout policy in the past, the temptation to cast itself as the financial policy alternative is growing. The chancellor is in for some difficult months on the home front, too, now."

According to the most recent surveys the leftist alliance Syriza would emerge the strongest party from fresh elections. On the web portal To Kouti tis Pandoras, blogger Kostas Vaxevanis says he can't understand why people are so afraid of a left-wing government in Greece: » more

According to the most recent surveys the leftist alliance Syriza would emerge the strongest party from fresh elections. On the web portal To Kouti tis Pandoras, blogger Kostas Vaxevanis says he can't understand why people are so afraid of a left-wing government in Greece: "A spectre is haunting Europe. … The ghost of Alexis Tsipras. For all those who haven't understood yet: all Europe is in peril if Tsipras comes into power. And everything our government has so carefully constructed will collapse. … But seriously now, the situation is pretty chaotic. It has been for three years because of the harsh austerity policy. … I'm not trying to defend Tsipras, or Kouvelis, or Kammenos [left- and right-wing leaders who reject the austerity policy]. I simply find it embarrassing for our democracy when - as back in the 1950s - everyone fears that the communists will take away our property and women. … I don't know whether or how Tsipras would govern. But both I and everyone else know exactly how the other politicians governed."

Greece runs the risk of chaos and a forced exit from the Eurozone should it decide against the austerity plan in the aftermath of Sunday's elections, fears the liberal daily Financial Times: » more

Greece runs the risk of chaos and a forced exit from the Eurozone should it decide against the austerity plan in the aftermath of Sunday's elections, fears the liberal daily Financial Times: "The Greek problem is now so acute that it cannot be 'fixed' through a few cleverly-drafted clauses, added to an EU treaty. It demands real, crunchy and dangerous decisions. Specifically, will Greece press ahead and make further billions of euros worth of budget cuts, within months, as demanded by its most recent bailout deal? If Greece refuses to do this, then the IMF has made clear that it will not authorise the release of the next tranche in aid to Greece. That, in turn, would mean that the Greek government simply ran out of money. Managed, if painful, cuts to pensions and wages would then be replaced by something much more chaotic and dangerous. The forced exit of Greece from the euro would also become much more likely."

Among other things the early parliamentary elections in Greece on Sunday will decide whether or not the harsh austerity programme imposed on the country by its creditors will be continued. The left-liberal online newspaper To Vima criticises the fact that the parties are either touting the austerity policy as a panacea or pushing for it to be renounced: » more

Among other things the early parliamentary elections in Greece on Sunday will decide whether or not the harsh austerity programme imposed on the country by its creditors will be continued. The left-liberal online newspaper To Vima criticises the fact that the parties are either touting the austerity policy as a panacea or pushing for it to be renounced: "The parties of these two camps are lying. They claim to have the solution to something that unfortunately no longer has a solution. The only thing they don't talk about is the reality. ... Namely that Greece is bankrupt and that it has just two options: either it goes along with the austerity dictates of its creditors, which would mean that Greece soon has salaries, pensions and a social welfare system on par with those in Romania or Bulgaria, and that unemployment will be even higher than in Spain. The other option is not to continue with this austerity. But no one knows where this path would lead. … It's highly likely that the country would suffer an even greater shock if it steered this course."

In Portugal, thousands of people took part in May 1st demonstrations to protest the mounting encroachments on labour and social rights and the rising unemployment which the liberal-conservative government's stringent austerity programme entails. Trade unions and employers' associations alike should use the transformation process to reconstruct the foundations of the economy, the business paper Jornal de Negócios points out: » more

In Portugal, thousands of people took part in May 1st demonstrations to protest the mounting encroachments on labour and social rights and the rising unemployment which the liberal-conservative government's stringent austerity programme entails. Trade unions and employers' associations alike should use the transformation process to reconstruct the foundations of the economy, the business paper Jornal de Negócios points out: "The trade unions must recognise that there can be no social welfare state without the creation of prosperity and jobs and without salaries finally being adjusted to productivity. For their part the employers' associations must understand that without motivated and qualified employees their companies cannot be successful. Do either of these parties realise what opportunities we have here?"

The yields on ten-year Spanish bonds on Monday rose above the critical six-percent barrier for the first time this year, with the Spanish economy shrinking for the second consecutive quarter. The country needs to strike out in a new direction instead of setting itself ever more austerity targets, writes the left-liberal daily Süddeutsche Zeitung: » more

The yields on ten-year Spanish bonds on Monday rose above the critical six-percent barrier for the first time this year, with the Spanish economy shrinking for the second consecutive quarter. The country needs to strike out in a new direction instead of setting itself ever more austerity targets, writes the left-liberal daily Süddeutsche Zeitung: "Without doubt, Spain must economise. Its budget deficit rose to 8.5 percent of the gross domestic product last year. But it's suicidal for Spain to try and reach the 3 percent limit by the end of 2013. To do that Madrid would have to axe 55 billion euros from its budget. ... Not even the Greeks have been forced to accept such a programme. ... It's becoming increasingly clear that austerity is only deepening the chasm in which Spain has found itself for some time now. This is a drama for Spain and, as the falling price of the euro demonstrates, for the Eurozone as a whole. The whole situation screams out for a change in direction."

The Spanish government led by Prime Minister Mariano Rajoy presented a 27 billion euro austerity package on Friday. But the package may only exacerbate the problems, writes the liberal-conservative daily the Financial Times: » more

The Spanish government led by Prime Minister Mariano Rajoy presented a 27 billion euro austerity package on Friday. But the package may only exacerbate the problems, writes the liberal-conservative daily the Financial Times: "Madrid's decision to increase the fiscal burden on firms by reducing corporation tax breaks is also odd. This could make it harder to attract the investment that the country needs to resume growth. A better idea would have been to increase taxes on consumption. This budget risks exacerbating social tensions without creating the conditions that would allow Spain's bond yields to fall. While the EU is to blame for imposing unnecessary austerity, Mr Rajoy's budget could have been better designed. It will be a while before his bullfight is over."

The EU finance ministers are showing leniency regarding Spain's deficit, allowing Madrid a budget deficit of 5.3 percent for this year instead of the agreed 4.4 percent. Nobel Prize winner Paul Krugman congratulates the EU on its decision and explains in the business paper Il Sole 24 Ore why austerity is not the solution to the crisis: » more

The EU finance ministers are showing leniency regarding Spain's deficit, allowing Madrid a budget deficit of 5.3 percent for this year instead of the agreed 4.4 percent. Nobel Prize winner Paul Krugman congratulates the EU on its decision and explains in the business paper Il Sole 24 Ore why austerity is not the solution to the crisis: "I've always viewed Spain, not Greece, as the quintessential euro crisis country. And with Spain now front and centre, the essential wrongness of the whole European policy focus becomes totally apparent. Spain did not get into this crisis by being fiscally irresponsible. … What's clear is that even more austerity does nothing to help. ... When a family tightens its belt it doesn't put itself out of a job. When a government tightens its belt in a depressed economy, it puts lots of people out of jobs; and this is a negative even from the government's own, narrowly fiscal point of view, since a shrinking economy means less revenue. … For the results of austerity policies in Europe have been as good a test as you ever get in macroeconomics, and without exception big cuts in government spending have been followed by big declines in GDP. So lose the belt; it's a really bad metaphor."

In the northern Greek city of Komotini an unemployed man stormed into his former workplace and took two hostages on Thursday, demanding his old job back and 31,000 euros owed to him by his former employer. Even if he gave up after twelve hours, the case once again showcases how social tensions are rising as a result of the austerity measures, the conservative business paper Naftemporiki notes: » more

In the northern Greek city of Komotini an unemployed man stormed into his former workplace and took two hostages on Thursday, demanding his old job back and 31,000 euros owed to him by his former employer. Even if he gave up after twelve hours, the case once again showcases how social tensions are rising as a result of the austerity measures, the conservative business paper Naftemporiki notes: "It's uncertain whether Greece's programme for fighting unemployment will be successful, because despite all that's been done the unemployment figures are still rising. As in other countries that have introduced austerity programmes, unemployment was meant to be fought here through the creation of more flexible labour relations. But as long as these measures fail to produce results the advocates of such programmes for debtor states will be confronted with millions of unemployed and increasing social tensions, which will hinder economic development."

More austerity is almost impossible, the business paper Il Sole 24 Ore writes, and doubts that the fiscal pact will help increase the Eurozone's credibility with financial markets: » more

More austerity is almost impossible, the business paper Il Sole 24 Ore writes, and doubts that the fiscal pact will help increase the Eurozone's credibility with financial markets: "At the bottom of their hearts many heads of government know that it will be difficult to impose more austerity measures on their countries. The social consequences are almost unbearable in the crisis. But how can they be less demanding without losing their credibility on the financial markets once more? Is it cleverer to formulate higher goals in the knowledge that they won't be attained? Or would it be wiser to set them lower and try to complement them with convincing reforms? A real decision can't be expected today. Only a preliminary decision - for the higher goals."

Roughly 300,000 people demonstrated in Lisbon against the conservative Portuguese government's austerity drive on the weekend. Although the Portuguese are in a similar position to the Greeks they will overcome the crisis because they act and demonstrate in unison, writes the left-leaning daily taz: » more

Roughly 300,000 people demonstrated in Lisbon against the conservative Portuguese government's austerity drive on the weekend. Although the Portuguese are in a similar position to the Greeks they will overcome the crisis because they act and demonstrate in unison, writes the left-leaning daily taz: "How different things are in Greece. A real mass demonstration has never taken place there because the employees' camp is too divided. Private sector employees envy the public servants, who earn so much more. And each sector is mainly concerned with its own interests. The ferry workers went on strike - and paralysed the tourist branch - without consulting other trade unions. It's every man for himself in Greece. … The Portuguese, on the other hand, are not only demonstrating collectively, they are tackling the reforms collectively. Government and opposition are working together to get the country back on its feet. What would be unthinkable in Greece works without a glitch in Portugal: when taxes are raised, they're collected too, and that's that."

While the Romanian government has resigned amidst massive protests against its austerity programme the Polish government is firmly in the saddle, writes political scientist Rafał Chwedoruk in the liberal daily Gazeta Wyborcza: » more

While the Romanian government has resigned amidst massive protests against its austerity programme the Polish government is firmly in the saddle, writes political scientist Rafał Chwedoruk in the liberal daily Gazeta Wyborcza: "There is no threat of a major revolution here even if the trade unions have already announced protests. I expect only the workers' representatives will participate. The plans to raise the retirement age will be at the centre of the dispute. But studies have shown that the Poles have the same attitude to the extension of their working lives as they have to the planned privatisation of the healthcare system. So I don't believe there will be major political upheaval. ... A return of the [national-conservative opposition party] PiS to power is therefore highly unlikely because for many people this party is simply not an option."

Spain's central bank has predicted negative growth of 1.5 percent for the country in 2012. Similar figures were announced today by the IMF. The left-liberal business paper Cinco Días warns that neither Spain nor Italy will be able to adhere to the austerity measures stipulated by Brussels: » more

Spain's central bank has predicted negative growth of 1.5 percent for the country in 2012. Similar figures were announced today by the IMF. The left-liberal business paper Cinco Días warns that neither Spain nor Italy will be able to adhere to the austerity measures stipulated by Brussels: "Whether it's owing to lack of political will or financial difficulties, neither Spain nor Italy - and probably not France either - will be able to meet the targets for consolidating their budgets. In both cases a stimulus programme would surely be desirable, as well as increasing the bailout fund in order to avoid further risks regarding debt repayment, no matter how much Germany and the Netherlands oppose such plans. ... Neither Spain nor Italy have managed to reduce their public deficit by more than one percentage point per year so far. ... To expect Spain to bring its deficit down from 8.2 percent to 3 percent within two years is naïve and could plunge the economy into a dangerous downward spiral."

The protests against Romania's austerity programme are understandable, writes the left-liberal daily La Repubblica, because the measures are far too harsh given the social problems in the country: » more

The protests against Romania's austerity programme are understandable, writes the left-liberal daily La Repubblica, because the measures are far too harsh given the social problems in the country: "These are the fiercest protests since the uprising of the miners in the 1990s. ... This time it's so-called civil society that is taking to the streets by the thousand because it has had enough. The Romanians' patience has come to an end. You can't implement a tough austerity programme and balance the budget without taking account of the reality of the situation. And this is what it looks like: double-digit unemployment, average wages of less than 350 euros and frozen pensions of 160 euros a month after 37 years of work. ... Prime Minister Emil Boc has now held out the prospect of dialogue with the social partners. Too late. This time the government has gone too far."

Following the victory of the pro-austerity parties in the Greek parliamentary elections German government representatives have expressed contradicting views on what should be done with the austerity requirements. The conservative daily Simerini criticises this lack of a unified stance: » more

Following the victory of the pro-austerity parties in the Greek parliamentary elections German government representatives have expressed contradicting views on what should be done with the austerity requirements. The conservative daily Simerini criticises this lack of a unified stance: "While Brussels is adopting a more positive stance and wants to 'reward' the Greeks for the election result, Berlin is acting as if nothing had changed! … Are the Germans deliberately acting like this towards the Greeks? There are many explanations for this behaviour, the most important being that Greece is a means for Berlin to establish itself as the strongest partner and thus define the EU's economic policy. At the same time the unequal distribution of power between Germany and France is becoming increasingly obvious. Merkel tolerates the Socialist Hollande, who is against the austerity policy, but she doesn't accept him. … Greece is being used as a guinea pig for political conflicts particularly between the major countries. Therefore Samaras needs to demonstrate his wisdom, political skills, powers of persuasion and resolve above all vis-à-vis Germany."

Several media have reported that the Greek government plans to make its creditors an offer to exchange their old government bonds for new ones in a bid to secure a new rescue package from the EU and IMF. The Greeks must once again demonstrate against further austerity measures, the left-leaning daily Avgi urges: » more

Several media have reported that the Greek government plans to make its creditors an offer to exchange their old government bonds for new ones in a bid to secure a new rescue package from the EU and IMF. The Greeks must once again demonstrate against further austerity measures, the left-leaning daily Avgi urges: "The decisions that will be made in the next few days in a swift and undemocratic process will have an impact on the future of entire generations. Involving the private sector in the planned debt restructuring and the second rescue package from the EU and IMF will drive Greece even further into recession and turn it into a state with limited sovereignty. ... It's time the citizens of Greece returned to the streets. If the country now stages demonstrations like those of last June the political class that has always supported these rescue packages would be defeated. The political carnival would come to an end, and the blackmailing would be ineffectual."

Several thousand Greeks on Wednesday commemorated the bloody quelling of a student uprising against the military regime on 17 November 1973. But fascist attitudes are far more widespread in Greece today than in 1973, writes Dionisis Gousetis in the conservative daily Kathimerini: » more

Several thousand Greeks on Wednesday commemorated the bloody quelling of a student uprising against the military regime on 17 November 1973. But fascist attitudes are far more widespread in Greece today than in 1973, writes Dionisis Gousetis in the conservative daily Kathimerini: "At that time the tone was set by the dictatorship. Today ... it has become customary to break the law, which is a predominantly fascist form of behaviour. Public buildings are occupied, laws are ignored, tolls go unpaid, fascists demonstrate and burn workers. ... They adopt the fascist principle of collective responsibility with slogans like 'cops, pigs, murderers' or 'bums, informers, journalists'. Groups that need protection like minorities, Roma, immigrants and refugees are targeted. ... History has shown that anger at the financial crisis hasn't pushed people into the leftist camp, as those who advocate this theory so naively hope, but to the right, to fascism."

According to recent Eurostat figures, on average almost a quarter of European youths aged between 15 and 24 are unemployed. In Greece and Spain that figure rises to over 50 percent. Business-friendly politicians are willing to accept such mass youth unemployment, the left-leaning weekly newspaper WOZ writes: » more

According to recent Eurostat figures, on average almost a quarter of European youths aged between 15 and 24 are unemployed. In Greece and Spain that figure rises to over 50 percent. Business-friendly politicians are willing to accept such mass youth unemployment, the left-leaning weekly newspaper WOZ writes: "There most certainly are alternatives to the prospect of long-term poverty for millions of youths: an across-the-board reduction of working hours instead of a raise in the retirement age, sensible employment programmes and support for community work financed by fair taxation of all income classes, instead of the dismantling of the welfare state. ... Capital - and its politicians - reject such proposals offhand. For them the growing reserve army of young labourers is also an effective means of introducing wage and pension dumping across the generations. Many older citizens and most unions still fail to grasp this fact. The protesting youths with their often very imaginative initiatives are way ahead of them. And their resistance also highlights what creative potential society is losing out on."

Poland is considering closing down several hundred police stations in small towns to stay below the country's legally fixed debt ceiling of 55 percent of GDP. The conservative daily Rzeczpospolita complains that cuts always hit rural Poland: » more

Poland is considering closing down several hundred police stations in small towns to stay below the country's legally fixed debt ceiling of 55 percent of GDP. The conservative daily Rzeczpospolita complains that cuts always hit rural Poland: "Yet another institution [after many post offices] is making the move from the boondocks to the big city. ... Poland is becoming a country comprised of no more than Warsaw, which is artificially bloated with loans, as well well as the larger cities of Wrocław and Krakau, which somehow manage to make ends meet. The provinces, meanwhile, are dying out. ... When someone from the government comes along and says that this is a development plan, it's just hot air. It's an exercise in liquidating rural offices. And the best offices to close are those of people whose protests aren't heard. Because those who protest are weak. Who cares in Warsaw about protests in some far-off district or some other place in the sticks? Because these people are doomed any way you look at it."

Public sector employees in Slovenia have announced a strike for today, Wednesday, in protest at the plans of the conservative government led by Prime Minister Janez Janša to cut their salaries. The austerity measures, aimed at reducing the budget by 800 million euros, are driving a wedge between the public and private sectors, writes the daily Večer: » more

Public sector employees in Slovenia have announced a strike for today, Wednesday, in protest at the plans of the conservative government led by Prime Minister Janez Janša to cut their salaries. The austerity measures, aimed at reducing the budget by 800 million euros, are driving a wedge between the public and private sectors, writes the daily Večer: "Today's public sector strike symbolises the moment in which the global conflict between two concepts - liberal capitalism and solidarity - translates into an open conflict here in Slovenia. ... Both concepts have their logic. The government concept, the liberal concept, uses numbers to demonstrate that the salaries in the public sector are higher than those in the private sector and are putting too much strain on the budget. Politicians are calling on public sector employees to show solidarity with the thousands of workers who would do anything for a job. ... Janša's government is doggedly pitching the public sector against the private sector: because the weaker the one side is, the easier it is to bring down the other using the former as an example."

Spain's trade unions have called a general strike for today, Thursday, against the labour market reform and the government austerity policy prescribed by the EU. The left-leaning daily Público calls in its online edition for mass participation in the protests: » more

Spain's trade unions have called a general strike for today, Thursday, against the labour market reform and the government austerity policy prescribed by the EU. The left-leaning daily Público calls in its online edition for mass participation in the protests: "A successful strike would actually help [Spanish head of government Mariano] Rajoy. Because Europe has demanded that he implement cuts without precedent - even harsher than those demanded of Greece, Ireland and Portugal. If the Spanish accept this abuse with resignation, passivity and docility, the government won't have the courage or the arguments to stand up to Brussels and Berlin. If the citizens don't apply pressure, who else can save us from this suicidal cutback in public spending that will plunge us headfirst into a recession?"

Several media have reported that the Greek government plans to make its creditors an offer to exchange their old government bonds for new ones in a bid to secure a new rescue package from the EU and IMF. The Greeks must once again demonstrate against further austerity measures, the left-leaning daily Avgi urges: » more

Several media have reported that the Greek government plans to make its creditors an offer to exchange their old government bonds for new ones in a bid to secure a new rescue package from the EU and IMF. The Greeks must once again demonstrate against further austerity measures, the left-leaning daily Avgi urges: "The decisions that will be made in the next few days in a swift and undemocratic process will have an impact on the future of entire generations. Involving the private sector in the planned debt restructuring and the second rescue package from the EU and IMF will drive Greece even further into recession and turn it into a state with limited sovereignty. ... It's time the citizens of Greece returned to the streets. If the country now stages demonstrations like those of last June the political class that has always supported these rescue packages would be defeated. The political carnival would come to an end, and the blackmailing would be ineffectual."

Portugal's Socialists are no longer prepared to back the new austerity measures. The main opposition party announced on Thursday that it would vote against the proposed budget for 2013. The liberal business paper Diário Económico voices annoyance at the carelessness with which the government has lost a broad consensus on the austerity package: » more

Portugal's Socialists are no longer prepared to back the new austerity measures. The main opposition party announced on Thursday that it would vote against the proposed budget for 2013. The liberal business paper Diário Económico voices annoyance at the carelessness with which the government has lost a broad consensus on the austerity package: "Prime Minister Passos Coelho has managed to undermine the key prerequisite for the success of the austerity programme: fundamental political and social consensus. ... Not only did the government announce an audacious of economic policy, it is dabbling in political experiments that are difficult to comprehend: the political cohesion of the coalition is at risk, the support of the main opposition party has been lost and the Portuguese are taking to the streets. Passos Coelho has no choice. He must make adjustments to the announced measures and this will cause many problems. … The Portuguese accepted the austerity measures for 2012, integrated them into their daily lives and tolerated impoverishment. But now they want to see results."

The business paper Ependytis is surprised to see how passively the leaders of the Eurozone are behaving this month even though the future of the Monetary Union is at stake: » more

The business paper Ependytis is surprised to see how passively the leaders of the Eurozone are behaving this month even though the future of the Monetary Union is at stake: "They act like nothing important is going on. As if there weren't urgent tasks to be fulfilled, as if the existence of the Eurozone, which they so eagerly defend, did not hang in the balance. Let's just let August go by without doing anything; we'll get down to real business in September! We'll let Greece sweat a bit, and Italy and Spain too, with their spiralling credit costs, … and little Cyprus can stew under a tough austerity package as punishment for its sins. It's enough that good habits aren't being broken: the summer holidays of the elite, the lack of action. ... Europe goes on holiday in August, but not the Europeans, or not all of the them. Europe takes a break while the Europeans worry. Europe sleeps while the Europeans have nightmares. The European leaders are recovering from the exertions of their indecisiveness."

After a round of tough negotiations, the Greek government agreed on a new austerity package on Wednesday evening. The aim is to cut spending by 11.5 billion euros so that the country can continue to receive support from international creditors. The left-liberal online paper To Vima explains the circumstances of the deal: » more

After a round of tough negotiations, the Greek government agreed on a new austerity package on Wednesday evening. The aim is to cut spending by 11.5 billion euros so that the country can continue to receive support from international creditors. The left-liberal online paper To Vima explains the circumstances of the deal: "Greece is under major pressure from abroad, and its hands are tied. At the same time the situation within the country is growing increasingly tense. The experts of the troika must compile a report on Greece's efforts to economise which will then decide whether the country will continue to receive financial support. ... The government can no longer take risks and play with the fate of the country. It is therefore hoping that it won't be forced to make even tougher compromises. This is a major dilemma to which no end is in sight. ... Greece can't free itself of the pressure without great pain and effort, and must prepare for further difficulties."

There is no reason why Spain should still be under such pressure from the financial markets after its government implemented the recent austerity package, according to the conservative daily El Mundo, which calls for the ECB to step in: » more

There is no reason why Spain should still be under such pressure from the financial markets after its government implemented the recent austerity package, according to the conservative daily El Mundo, which calls for the ECB to step in: "It's irrational that [the financial markets] should ignore the Spanish government's reforms. So we must turn our attention to Germany and the ECB. It's up to them to put an end to this pressure which is battering our nation. Germany cannot hide behind a contradiction: on the one hand endorsing euro loans, on the other allowing Spain to totter on the edge of the abyss. The only explanation is that Germany intends to sever itself from a number of EU states. And say goodbye to an EU which is suffering under the design flaw of having no financial institution to assume ultimate responsibility. Merkel must allow [ECB president] Draghi to exert an influence over the markets, as he did for the second time months ago, and alleviate this unbearable situation."

The anger of the Spanish population at the austerity measures passed by the Spanish Congress on Thursday is understandable, but the government must not bow under the pressure, writes the conservative daily El Mundo: » more

The anger of the Spanish population at the austerity measures passed by the Spanish Congress on Thursday is understandable, but the government must not bow under the pressure, writes the conservative daily El Mundo: "It's logical that the citizens, including those who voted for the [ruling] People's Party, are annoyed about the increase in VAT, cuts in unemployment benefits and lower salaries for public servants. But as understandable and justified as the protests may be, it is just as logical and true that the government has no leeway to cede because the state of the public coffers and dependence on foreign assistance don't permit it. … The government is trapped between the pressure of the markets and the pressure from the streets because on the very day the citizens expressed their discontent across Spain the yield premium on Spanish bonds rose to its highest ever level."

The Greek Labour Minister Nikos Nikolopoulos stood down on Monday in "resignation" over the talks on the country's austerity package, becoming the third member the new government has lost in the three weeks since it took office. The left-liberal online paper To Vima criticises Nikolopoulos's decision and warns the remaining members of government: » more

The Greek Labour Minister Nikos Nikolopoulos stood down on Monday in "resignation" over the talks on the country's austerity package, becoming the third member the new government has lost in the three weeks since it took office. The left-liberal online paper To Vima criticises Nikolopoulos's decision and warns the remaining members of government: "Nikolopoulos has proven with his behaviour that he doesn't realise the gravity of the country's situation and that the only thing he's interested in is his own political survival. … It is unacceptable for this government to be repeatedly rocked by internal crises just because certain members are incapable of fulfilling difficult tasks. The government faces the challenge of solving the crisis, rebuilding the economy and boosting the country's productivity - no matter what the cost, even in political terms. All politicians will be measured by their success in this endeavour. Both those who made a real effort and those who preferred to abandon ship in the hope of saving themselves politically."

With the 17 June elections in mind, politicians in Greece are increasingly evoking the possibility of renegotiating the tough austerity measures with creditors. The conservative business paper Naftemporiki writes that Athens can't reject the austerity package without making a counter-proposal: » more

With the 17 June elections in mind, politicians in Greece are increasingly evoking the possibility of renegotiating the tough austerity measures with creditors. The conservative business paper Naftemporiki writes that Athens can't reject the austerity package without making a counter-proposal: "We never stop hearing that the austerity package must be partially or entirely renegotiated with creditors, without anyone saying specifically how that can be done. ... We can't convince the foreign technocrats to back off on the unpleasant austerity measures if we don't propose comparable measures and a concrete growth plan in return. ... We shouldn't forget that we will have to negotiate with the troika under very difficult conditions after the elections. The next government will have an empty treasury and must request the release of the next tranche in June. Under such conditions this government will not be able to effect a change to the austerity package if the investors don't want it or aren't convinced of its merits."

With an eye to the new elections in June, Greece's politicians and the troika must be willing to make concessions, the left-liberal daily Süddeutsche Zeitung comments: » more

With an eye to the new elections in June, Greece's politicians and the troika must be willing to make concessions, the left-liberal daily Süddeutsche Zeitung comments: "To that end the leftist alliance Syriza must also be prepared to take off its blinkers. The party acts as if the debt crisis didn't exist. ... Syriza rejects the 'austerity dictates', citing the popular will as its justification. But that is only half of the truth. 80 percent reject the austerity package, however as confused as the Greeks are at the moment, 80 percent also want to remain in the euro. Syriza claims both are possible. Reality will teach it otherwise. Until then, the party must change from a protest movement into a party capable of executing policies. ... Regardless of who is elected in June: the EU and IMF will have to accommodate Athens to a certain extent, otherwise this new government won't last long either. In the long run you can't govern against the majority of the people. Unless you're ready to put democracy on the line."

Greece must remain in the Eurozone and reach a new agreement with its creditors, writes economist Giannis Varoufakis on web portal Protagon: » more

Greece must remain in the Eurozone and reach a new agreement with its creditors, writes economist Giannis Varoufakis on web portal Protagon: "Whether we like it or not, Greece's fate is inextricably entwined with that of the rest of the Eurozone. If we act like we can get along on our own, without Europe's help, we will create a situation that destroys all hope that our voice against the austerity measures will lead to something good. This is the situation: on the one hand it is impossible to comply with the terms of the austerity package. … On the other it's just as impossible for us to finance the development and reform policy needed to get out of the crisis. So what can we do? There's just one solution and it is laden with difficulties: we must renegotiate the terms of the austerity agreement between Greece and its creditors - as a member of the Eurozone."

The Spanish government led by Prime Minister Mariano Rajoy presented a 27 billion euro austerity package on Friday. But the package may only exacerbate the problems, writes the liberal-conservative daily the Financial Times: » more

The Spanish government led by Prime Minister Mariano Rajoy presented a 27 billion euro austerity package on Friday. But the package may only exacerbate the problems, writes the liberal-conservative daily the Financial Times: "Madrid's decision to increase the fiscal burden on firms by reducing corporation tax breaks is also odd. This could make it harder to attract the investment that the country needs to resume growth. A better idea would have been to increase taxes on consumption. This budget risks exacerbating social tensions without creating the conditions that would allow Spain's bond yields to fall. While the EU is to blame for imposing unnecessary austerity, Mr Rajoy's budget could have been better designed. It will be a while before his bullfight is over."

The Greeks celebrated their Independence Day amidst a barrage of security measures on Sunday. Large areas of Athens were cordoned off by the police in an effort to forestall potential protests against the austerity programme during the parade, and violent protest broke out in several other cities. The online portal tvxs questions the politicians' fear of the people: » more

The Greeks celebrated their Independence Day amidst a barrage of security measures on Sunday. Large areas of Athens were cordoned off by the police in an effort to forestall potential protests against the austerity programme during the parade, and violent protest broke out in several other cities. The online portal tvxs questions the politicians' fear of the people: "Seldom in the past have we witnessed scenes like those in Athens, where the special police unit Mat and hundreds of police officers in civilian clothing were under orders to mix with the crowds and applaud. Perhaps there were such scenes in some of those Latin American countries shortly before the hated junta was replaced by another regime. Because these drastic measures and the entire mood are reminiscent of dictatorships. ... So the election campaign is beginning under optimal conditions. The supporters of the ruling coalition and the austerity packages dare not show their faces in cafés or at the parades."

The austerity dictate from Brussels will impoverish the Greeks, and that will ultimately work against the entire Eurozone, the tabloid Correio da Manhã warns: » more

The austerity dictate from Brussels will impoverish the Greeks, and that will ultimately work against the entire Eurozone, the tabloid Correio da Manhã warns: "What remains of the draconian austerity package for Greece is the image of violence on Syntagma Square in the heart of Athens. On the same day the German finance minister warned the Greeks that they could not continue being a bottomless pit. The troika is enforcing another dose of poverty with wage cuts and rising unemployment. Europe has allowed the Greek politicians to make a fool of it in recent years: they used the times of a cheap and easy euro to wrack up debts for the country beyond all limits. Now all Europe has to offer is frugality. And the rejection of this painful remedy is causing more poverty. If the EU doesn't start offering citizens a ray of hope it will very soon plunge into the abyss."

The fact that the Greek party leaders still haven't reached complete agreement on the austerity package prompts the business paper Cinco Días to compare the country with a stubborn patient: » more

The fact that the Greek party leaders still haven't reached complete agreement on the austerity package prompts the business paper Cinco Días to compare the country with a stubborn patient: "The situation in Greece brings to mind a patient who has been diagnosed by the doctors and urgently prescribed a course of treatment. They explain to the patient what will happen if he doesn't take the medicine or refuses to undergo an operation, but the patient still won't be hurried into anything and insists on taking time to make his own decision about what to do or not to do. The catch here is that Greece is not an isolated case but extremely contagious. And its lack of discipline poses a threat not just to a couple of neighbours but the entire community. … The potential disorderly bankruptcy about which there has been so much speculation and an exit from the monetary union would have unforeseeable consequences for Europe, which is stumbling along as if caught in a sandstorm."

Spanish Prime Minister Mariano Rajoy will meet the Catalan regional prime minister of Catalonia Artur Mas for talks this Thursday after 1.5 million Catalonians marched for the independence of their region last week. Rajoy would do well not to adopt a confrontational stance, the Catalan daily El Periódico de Catalunya warns: » more

Spanish Prime Minister Mariano Rajoy will meet the Catalan regional prime minister of Catalonia Artur Mas for talks this Thursday after 1.5 million Catalonians marched for the independence of their region last week. Rajoy would do well not to adopt a confrontational stance, the Catalan daily El Periódico de Catalunya warns: "After last week's historical mass demonstration on Catalan National Day the protagonists, the antagonists and even the supposedly independent arbitrator [King Juan Carlos of Spain] have allowed the battle of words to escalate in a way that doesn't bode well. No one is trying to avoid a full-on collision between Catalonia and Spain. … Rajoy would be well advised to avoid any harsh words. Instead he should stretch out his hand to Mas at today's meeting to help him avoid an institutional conflict with unforeseeable consequences. This would earn him the regional prime minister's gratitude. And that of the great majority of Catalonians."

According to police reports, more than a million Catalonians demonstrated for their independence in Barcelona on Wednesday. Europe should pay close attention to Catalonia's struggle for independence, which has flared up again in the midst of the debt crisis, the conservative daily Le Figaro warns: » more

According to police reports, more than a million Catalonians demonstrated for their independence in Barcelona on Wednesday. Europe should pay close attention to Catalonia's struggle for independence, which has flared up again in the midst of the debt crisis, the conservative daily Le Figaro warns: "The Catalonians argue that 19 percent of state expenditure should be allocated to them because they produce 19 percent of Spain's GDP. But in so doing they ignore the mechanisms of solidarity between the country's regions. ... How is one to justify European crisis policy and the financial solidarity mechanism under such conditions? ... Europe only makes sense if the nations that form part of it demonstrate solidarity with each other. ... The Catalans teach us that under the surface a narrow-minded and populist nationalism is threatening the very foundations of the European edifice - and this at at time when it is fighting to save its currency. Southern Europe is not making things easy for its partners, and is demonstrating a lack of political responsibility that could prove fatal."

Hundreds of thousands of Catalans gathered in Barcelona on their regional holiday on Tuesday to demonstrate for the independence of their region, and against the government's austerity measures. The left-liberal daily El País calls for a serious debate on federalism: » more

Hundreds of thousands of Catalans gathered in Barcelona on their regional holiday on Tuesday to demonstrate for the independence of their region, and against the government's austerity measures. The left-liberal daily El País calls for a serious debate on federalism: "Spanish democracy is now mature enough to face this challenge. However this must be done on the basis of transparency and clear rules, and take into account viable alternatives to the independence proposal. After all, there are many Catalonians who weren't at the demonstration and who don't identify with it. ... A serious, constructive debate about an acceptable solution for the relationship between Catalonia and Spain is possible and necessary. So far the system of autonomous communities has brought Spain unprecedented wealth, but nothing is irrevocable and many favour a federalist model. In democracy, any proposal can be discussed, including independence, but those who defend the idea must explain very clearly what they intend to do with it."

In view of France's record public debt of 90 percent of the GDP, the French government must stop telling its citizens rosy times are ahead, the liberal daily Ouest-France demands: » more

In view of France's record public debt of 90 percent of the GDP, the French government must stop telling its citizens rosy times are ahead, the liberal daily Ouest-France demands: "Such denial is worthy of Tartuffe the imposter, but not of a genuine democracy. ... No sooner were certain taxes raised than all of a sudden an extra 30 billion euros were needed for the 2013 budget. Yet the tax burden on French citizens, one of the highest in the world, cannot be raised any further without risking the most harmful consequences. ... The only true option is putting a stop to waste and non-priority spending. This must go hand in hand with a reorientation of public investment geared towards ensuring future growth and not just keeping the economy running in its present state. ... How can we accept that our children and grandchilden, who already have great difficulties finding a job, will on top of that have to repay this mountain of debt ? It is time for us to collectively acknowledge that the party is over. And it is the duty of those in government to put this point across."

The troika is recommending that Greece introduce a six-day working week while at the same time curbing employees' rights, Greek media reported on Monday, basing these claims on emails sent to the Economics Ministry. This spells the end of democracy in Greece, columnist and caricaturist Stathis Stavropoulos writes on the web portal enikos.gr: » more

The troika is recommending that Greece introduce a six-day working week while at the same time curbing employees' rights, Greek media reported on Monday, basing these claims on emails sent to the Economics Ministry. This spells the end of democracy in Greece, columnist and caricaturist Stathis Stavropoulos writes on the web portal enikos.gr: "If the troika together with its Greek puppets tries to introduce medieval working conditions, the kind of working conditions that in modern times are only established by fascist regimes by force of arms, there is no need for us to say goodbye to democracy: it's already dead. … In times of crisis capitalism shows its true face: it is fascism wearing a tie. And to make it socially acceptable it doesn't have to go round the pubs gathering the citizens' support; it can rule without it. And those who are now calling on us to work 13 hours a day and six to seven days a week so we can afford a decent meal are practicing the socially accepted fascism of the 'free' markets. They pretend to be democratic but in reality they are vampires. And once their work is finished Greece will be a special economic area whether it's with the euro or with the drachma."

François Hollande wants to invest 2.3 billion euros in fighting youth unemployment. The rapper Mokless, the journalist Mouloud Achour and the entrepreneur Félix Marquardt think this won't solve the problem and call on French youths to emigrate instead in the left-liberal daily Libération: » more

François Hollande wants to invest 2.3 billion euros in fighting youth unemployment. The rapper Mokless, the journalist Mouloud Achour and the entrepreneur Félix Marquardt think this won't solve the problem and call on French youths to emigrate instead in the left-liberal daily Libération: "Young people of France, this is not a call to evade taxes, but simply to leave. As we say in Northern Africa and in the poorest neighbourhoods of France, your elders treat you like asses without ears, 'khmar bla ouinedine'. Their pretty words increasingly conceal a far more embarrassing truth: you live in a hyper-centralist, ossified gerontocracy which crumbles a little more each day. ... Or, to put it more prosaically, get the hell out of here if you want to get more out of life. Because even if you don't make more money right away by (re)launching your career abroad, the probability that your lifestyle will improve after a couple of years is far greater than if you remain stuck in the mud here in France. ... Young people of France, not just your homeland is yours for the taking, but the entire world. So go out and take it, even if it hurts."

Since the introduction of harsh austerity measures Greece has witnessed an increase in the number of violent, sometimes fatal attacks against immigrants and ethnic minorities, in which gangs of thugs belonging to the neo-Nazi party Chrysi Avgi, or Golden Dawn, are also involved. But Europe is content to just looking on impassively, the left-liberal daily The Independent complains: » more

Since the introduction of harsh austerity measures Greece has witnessed an increase in the number of violent, sometimes fatal attacks against immigrants and ethnic minorities, in which gangs of thugs belonging to the neo-Nazi party Chrysi Avgi, or Golden Dawn, are also involved. But Europe is content to just looking on impassively, the left-liberal daily The Independent complains: "As with many fascist groups, Golden Dawn claims to represent the marginalised working class. Like far-right groups across Europe - including the English Defence League and the new British Freedom Party - Golden Dawn declares itself the enemy of a bankrupt democratic system, exploiting for its own ends popular anger against neoliberal economic mismanagement. However, although it professes to stand against austerity, it has no economic project: its tactics are simply violent, divisive and nauseatingly racist. And the governments of Greece and Europe seem willing to tolerate this as the social cost of an ongoing austerity consensus."

In the bid to get the country's public finances back on track Portugal's public broadcaster RTP is to be privatised. A deal that will only place an additional burden on taxpayers, the liberal daily i criticises: » more

In the bid to get the country's public finances back on track Portugal's public broadcaster RTP is to be privatised. A deal that will only place an additional burden on taxpayers, the liberal daily i criticises: "The business with RTP's licences is following the usual pattern: the taxpayer will pay more than 100 million euros a year while a broadcaster that generates profits of over 20 million per year is handed over to a 'private friend'. ... The usual suspects can calmly argue that a private company is perfectly capable of running a public service programme, but everyone knows that the goal of a private company is to make a profit, not to provide socially relevant content. ... The problem with this government is not that its misguided reforms are not being scrapped but that its business deals, which will destroy the legacy of many generations, can no longer be revoked. ... We don't need these reforms; we need a democratic revolution that excludes this selfish elite from power."

During his visits to Berlin on Friday and Paris on Saturday the Greek Prime Minister Antonis Samaras managed to win his European partners over to his programme, but he now faces the task of persuading his opponents at home, the left-liberal online paper To Vima writes: » more

During his visits to Berlin on Friday and Paris on Saturday the Greek Prime Minister Antonis Samaras managed to win his European partners over to his programme, but he now faces the task of persuading his opponents at home, the left-liberal online paper To Vima writes: "With his trip Samaras has, so to speak, dismantled the external front [of the key EU partners against Greece] for now. So he can finally turn his attention to the front against him at home, which is far more dangerous. … Because the measures he has promised are almost certain to trigger very strong social and political reactions. It will probably come to problems with the different factions of the cooperating parties. There are already viewpoints that could endanger a united course of the socialist Pasok party, the Democratic Left and also the conservative Nea Demokratia. At any rate, the Athens front may well turn out to be much tougher than that in Berlin - with all that entails."

An Iraqi immigrant was attacked and fatally injured on the street in Athens on Sunday. The police are searching for five suspects, but refuse to comment on whether the culprits could belong to the extreme-right party Chrysi Avgi. The news portal Protagon demands that the police finally take action against racist attacks and investigate cases of sympathisers with the far right in their own ranks: » more

An Iraqi immigrant was attacked and fatally injured on the street in Athens on Sunday. The police are searching for five suspects, but refuse to comment on whether the culprits could belong to the extreme-right party Chrysi Avgi. The news portal Protagon demands that the police finally take action against racist attacks and investigate cases of sympathisers with the far right in their own ranks: "Many democratically-minded citizens associate the inefficiency of the police in fighting racist crimes with the ties of some police officers to right-wing extremist groups and fascist ideas. ... Will we allow Neonazis and a couple of idiots to turn our society into a jungle? Or will democracy finally make its presence felt and severely punish those who attempt to take the law into their own hands? For this to happen the Greek police must be politically neutral and more sensitive to migrants. ... If that is too much to ask of our police, the state must look for other officers who want - and are able - to do just that."

German politicians called statements made by the Italian Prime Minister Mario Monti undemocratic at the beginning of the week, while the Italian daily Il Giornale on Friday labelled the German Federal Republic a "Fourth Reich" seeking to dominate other countries. The tone of discourse in Europe is becoming increasingly aggressive, writes the conservative daily Lidové noviny: » more

German politicians called statements made by the Italian Prime Minister Mario Monti undemocratic at the beginning of the week, while the Italian daily Il Giornale on Friday labelled the German Federal Republic a "Fourth Reich" seeking to dominate other countries. The tone of discourse in Europe is becoming increasingly aggressive, writes the conservative daily Lidové noviny: "Monti knew that he was provoking the Germans, whose Constitutional Court only endorsed the participation in the euro bailout with gritted teeth and on the condition of heightened parliamentary control. German politicians don't want to waive the rules of democracy just because of Italy's debts. So now we have the 'Fourth Reich'. ... And this is not the statement of some extremist anarchist current. The owner of the paper is the family of Silvio Berlusconi. ... France's president, in turn, is using the media to prompt Italy and Spain to relinquish part of their sovereignty. Parisian papers write about how the authorities in Naples have been paying retirement benefits to a woman who died nine years ago. With all these polemics, just where are the people of Europe?"

Monti's technocratic stance reveals the lack of democratic thinking among EU elites, writes the liberal-conservative daily Die Presse, arguing that in the long term this will hurt the European project: » more

Monti's technocratic stance reveals the lack of democratic thinking among EU elites, writes the liberal-conservative daily Die Presse, arguing that in the long term this will hurt the European project: "Monti and other enlightened rulers no doubt mean well. But their conception of politics is confined to somewhere between technocracy and autocracy. How else could Italy's prime minister seriously preach that every government has the duty to rein in its parliament? In 'Montiropa', not even rhetorically does power emanate from the people. The citizens and parliaments are just obstacles when it comes to saving the euro. ... If under the dictates of the crisis, democratic and constitutional institutions are pushed to the fringes, the project of Europe could in the long term suffer more damage than any dithering on euro decisions inflicts. Quite apart from the fact that even three years after the first signs of smoke from Greece were detected the European fire brigade somehow doesn't give the impression of knowing how to tackle the wildfire spreading across Euroland."

The European Central Bank is expected to take an important step in saving the euro on Thursday. Economic Nobel Prize laureate Paul Krugman voices his support in the left-liberal daily La Repubblica for ECB President Mario Draghi and his proposal to purchase government bonds: » more

The European Central Bank is expected to take an important step in saving the euro on Thursday. Economic Nobel Prize laureate Paul Krugman voices his support in the left-liberal daily La Repubblica for ECB President Mario Draghi and his proposal to purchase government bonds: "[P]olicymakers would have to (a) do something to bring southern Europe's borrowing costs down and (b) give Europe's debtors the same kind of opportunity to export their way out of trouble that Germany received during the good years. ... Draghi - who I suspect understands all of this - basically floated the idea of having the central bank buy lots of southern European bonds to bring those borrowing costs down. But over the next two days German officials appeared to throw cold water on that idea. ... The euro can't be saved unless Germany is also willing to accept substantially higher inflation over the next few years - and so far I have seen no sign that German officials are even willing to discuss this issue, let alone accept what's necessary. Instead, they're still insisting, despite failure after failure - remember when Ireland was supposedly on the road to rapid recovery? - that everything will be fine if debtors just stick to their austerity programs. ... For failure of the euro wouldn't just cause economic disruption; it would be a giant blow to the wider European project, which has brought peace and democracy to a continent with a tragic history."

Over 600,000 Bulgarian households are surviving on less than 100 euro monthly per family member, the KNSB union announced on Sunday. Against a background of inflation and rising unemployment the daily Duma sees Bulgaria facing social disaster if the government does not intervene immediately: » more

Over 600,000 Bulgarian households are surviving on less than 100 euro monthly per family member, the KNSB union announced on Sunday. Against a background of inflation and rising unemployment the daily Duma sees Bulgaria facing social disaster if the government does not intervene immediately: "The worst is yet to come because in winter more money is needed for food, heating and clothes. And there will be more desperate people who see no way out of their situation. ... The Bulgarian government's austerity measures might look good on paper, they might make Finance Minister Djankov smile, but they are no guarantee for the future. The only solution is higher wages, more jobs and proper measures against inflation and rises in the cost of living. ... But for this we need a state and a government that is prepared to do something for its people."

According to the election management, only 46 percent of Romanians turned out to vote in the referendum. This falls short of the necessary quorum and means Băsescu could stay in office. But this is not really about Băsescu, it's about Romania's political culture, writes the weekly Dilema Veche: » more

According to the election management, only 46 percent of Romanians turned out to vote in the referendum. This falls short of the necessary quorum and means Băsescu could stay in office. But this is not really about Băsescu, it's about Romania's political culture, writes the weekly Dilema Veche: "Even Traian Băsescu had no idea how to behave in high office. And yet, there was no evidence that he had committed a grave violation of the constitution. Conversely the government and majority of parliamentarians did violate the principles of a constitutional state. ... In the referendum people were not voting for or against Băsescu, but for or against living by democratic rules. No matter what the outcome, we need new politicians who respect the institutions. We don't have any so far. Until the time comes when we do, the crisis will continue and we will lose ourselves in elaborate opinions instead of confronting the facts: that we have a problem with political culture."

The anger of the Spanish population at the austerity measures passed by the Spanish Congress on Thursday is understandable, but the government must not bow under the pressure, writes the conservative daily El Mundo: » more

The anger of the Spanish population at the austerity measures passed by the Spanish Congress on Thursday is understandable, but the government must not bow under the pressure, writes the conservative daily El Mundo: "It's logical that the citizens, including those who voted for the [ruling] People's Party, are annoyed about the increase in VAT, cuts in unemployment benefits and lower salaries for public servants. But as understandable and justified as the protests may be, it is just as logical and true that the government has no leeway to cede because the state of the public coffers and dependence on foreign assistance don't permit it. … The government is trapped between the pressure of the markets and the pressure from the streets because on the very day the citizens expressed their discontent across Spain the yield premium on Spanish bonds rose to its highest ever level."

In Madrid alone at least 100,000 people demonstrated on Thursday against the Spanish government's austerity policies, and there were clashes between police and protesters. The threat of growing violence can only be avoided by a true coalition between the people and its government, the liberal internet portal Marianne2 urges: » more

In Madrid alone at least 100,000 people demonstrated on Thursday against the Spanish government's austerity policies, and there were clashes between police and protesters. The threat of growing violence can only be avoided by a true coalition between the people and its government, the liberal internet portal Marianne2 urges: "If the government were responsible and courageous it would put an ultimatum to Europe and explain that it cannot kill off its youth, and that a sensible plan is necessary. ... But nothing of the sort is being done. The elite refuses to offer the population a future, or rather: a present. ... Violence is escalating as the result of a complete lack of responsibility. All citizens need to be aware that they must unite and propose a realistic program to their politicians, who no longer have a grip on the situation. Indignation alone won't help matters. Courage and solidarity are called for. ... Otherwise the violence will only get worse. Until the unimaginable happens?"

After the German parliament's approval on Thursday, the path is free for the Spanish bank bailout operation to go ahead. But this is just a drop in the ocean, writes the liberal daily Corriere del Ticino, because the high interest rates on government bonds could quickly be the doom of both Spain and the second struggling country Italy: » more

After the German parliament's approval on Thursday, the path is free for the Spanish bank bailout operation to go ahead. But this is just a drop in the ocean, writes the liberal daily Corriere del Ticino, because the high interest rates on government bonds could quickly be the doom of both Spain and the second struggling country Italy: "The austerity packages adopted in Madrid and Rome haven't reduced the borrowing costs the countries must shoulder to obtain fresh money on the financial market. And the investors' flight to safer havens continues, as the negative interest rates on short-term German, Finnish and Austrian bonds demonstrated. This confirms the lack of credibility of the measures agreed at the last euro crisis summit. … Without the new bailout fund the summer threatens to be a very tricky period for Spain and Italy. They can only resort to the 100 billion euros in the old EFSF rescue fund, a ridiculous sum that will hardly impress the speculators."

The Spanish Congress votes today on the austerity measures put forward by the government last week. The conservative daily ABC warns the opposition not to incite the country to further protests against the government in the midst of the parliamentary debate: » more

The Spanish Congress votes today on the austerity measures put forward by the government last week. The conservative daily ABC warns the opposition not to incite the country to further protests against the government in the midst of the parliamentary debate: "The announcement of new reforms has triggered a protest movement with inflammatory calls for a 'war' against the government. The attempts of the trade unions and other leftist groups to drag Spain into a situation like that in Greece are lamentable. … The Socialists led by Alfredo Pérez Rubalcaba [the opposition in parliament] now have the choice: either they position themselves at the head of the street demonstrations - with unpredictable and uncontrollable consequences. Or they assume the role of a critical and watchful opposition that may vote against the government's measures but still works to stabilise the country and help it recover."

Whether Spain's reforms will make a positive impact won't be clear until the end of the year, the liberal business paper Handelsblatt concludes, but it's not sure the country won't go bankrupt before then: » more

Whether Spain's reforms will make a positive impact won't be clear until the end of the year, the liberal business paper Handelsblatt concludes, but it's not sure the country won't go bankrupt before then: "There was good news for the Spanish this week: they have a year longer, until 2014, to reduce their new indebtedness from the most recent level of 8.9 percent (end 2011) to below the deficit limit of three percent. … However even this short-term concession won't ease the pressure from the financial markets. If, by some means, it becomes clear at the end of the year that Spain will manage to attain its new budget goal, and if, by some means, there is a sign that the structural reforms are starting to take effect and that the economy has reached the end of its nosedive, confidence could resurge and lead to lower financing costs. With the current interest rate level, however, Spain won't last for that much longer."

The German Institute for Economic Research (DIW) proposed in a study published on Wednesday the introduction of mandatory bonds and short-term special levies for the wealthy as a means of easing the strain on the German budget. The liberal-conservative daily Die Presse is amazed at this call for expropriation: » more

The German Institute for Economic Research (DIW) proposed in a study published on Wednesday the introduction of mandatory bonds and short-term special levies for the wealthy as a means of easing the strain on the German budget. The liberal-conservative daily Die Presse is amazed at this call for expropriation: "All in all the DIW is indubitably a serious institution. This makes its proposal to finance the budget deficit through measures only used under martial law or in the German Democratic Republic all the more surprising. … Let's take the car keys away from the wealthy! They can always buy a new car. And do they really need their huge villas? When the states mismanaged by their irresponsible political pals are in a bad way, surely they can make do with a council house instead. After all, we all know: possessions are a burden. Those who see this as pure polemics are mistaken. Once the state violates ownership rights no one is safe. And this call from the DIW for the expropriation of the people demonstrates how serious the current sovereign debt crisis has become."

Reactions to the celebrations marking the 50th anniversary of the Franco-German reconciliation last weekend in Reims were luke warm indeed, the philosopher André Glucksmann laments in the conservative daily Le Figaro, and pins the blame for the lack of interest on the short-sightedness of today's politicians: » more

Reactions to the celebrations marking the 50th anniversary of the Franco-German reconciliation last weekend in Reims were luke warm indeed, the philosopher André Glucksmann laments in the conservative daily Le Figaro, and pins the blame for the lack of interest on the short-sightedness of today's politicians: "De Gaulle and Adenauer took a long-term view of things. They had three wars behind them, two of them world wars, and ahead of them the long-term project of a continent reunited in democracy. Their heirs of today are victims of the sickness - shared with most elites - of 'short-termism'. ... They can see no further than the next election campaign, no farther afield than their national territory, no higher than their approval rating. They are day-to-day managers. Not exceptionally good, not exceptionally talented. They dismiss the major challenges out of hand. A joint military defence? No progress in 50 years. Nothing but hazy institutional drafts and paltry initiatives. 'Short-termism' is nothing more than old prejudices wrapped up in this season's technical jargon."

The pilots of Portugal's state-owned airline TAP plan to strike this Thursday. They want a pay rise and the right to a say on the planned privatisation of the company. In his blog A Tempo e a Demodo Henrique Raposo makes fun of the pilots: » more

The pilots of Portugal's state-owned airline TAP plan to strike this Thursday. They want a pay rise and the right to a say on the planned privatisation of the company. In his blog A Tempo e a Demodo Henrique Raposo makes fun of the pilots: "These poor devils, who earn just 8,000 euros a month, are striking against the neo-fascist policies of the government. That makes sense. Indeed these workers of the lower tax brackets must raise their voices. Deeply moved by their precarious working conditions, society immediately expressed its solidarity. Thousands of jobless people are rushing to the social insurance office to donate part of their unemployment benefit. And a supermarket chain well known for its guerilla strategies has launched a food collection for these martyrs. ... Caritas is busy preparing a donation of fine clothes for the opera. Armani and Prada have also been contacted. They have all generously announced that they will donate their summer 2011 collections to the penniless pilots."

France's new government needs to fill a gap of around 40 billion euros in its budget to avoid being forced to submit to international austerity obligations. This was the conclusion arrived at in a report by the audit office commissioned by President François Hollande shortly after he took office. Now Hollande must start using the red ink and make some cuts, writes the left-liberal daily Süddeutsche Zeitung: » more

France's new government needs to fill a gap of around 40 billion euros in its budget to avoid being forced to submit to international austerity obligations. This was the conclusion arrived at in a report by the audit office commissioned by President François Hollande shortly after he took office. Now Hollande must start using the red ink and make some cuts, writes the left-liberal daily Süddeutsche Zeitung: "After the victory in the French presidential elections the Socialist put on a good show for the people at first. He partially re-introduced retirement at 60, increased social benefits, announced the creation of new teaching jobs and agitated all Europe with his calls for growth. ... Now the free programme is over. ... If he wants to strengthen France he must demand just as many reforms as his conservative predecessor Nicolas Sarkozy. This will provoke a revolt among the radical Left and the trade unions. Then it will be time for Hollande to demonstrate his staying power. At the same time he must convince the French that they aren't making sacrifices for Angela Merkel or the financial markets. They are making them for their country and their children."

Even if the left-wing alliance Syriza hasn't managed the leap into government in the Greek elections the success of party leader Alexis Tsipras will influence European politics, writes Daniel Oliveira in his blog Arrastão, noting that Tsipras achieved "a major feat: » more

Even if the left-wing alliance Syriza hasn't managed the leap into government in the Greek elections the success of party leader Alexis Tsipras will influence European politics, writes Daniel Oliveira in his blog Arrastão, noting that Tsipras achieved "a major feat: in just three years he has sextupled the election result of his party. But this wasn't enough to win the election. The Eurocrats and Ms. Merkel breathed a sigh of relief. Their blackmailing tactics and the unprecedented interfering in the political life of an EU member state don't detract from the democratic legitimacy of the Greek elections. Europe didn't receive the blow it urgently needs so as not to self-destruct. … But with its results and the losses of the troika parties Syriza has managed to ensure that not everything stays the same as it was. Greece has failed to give the impetus for a rebirth of European policy but at least it has given people a fright the effects of which will last for a while."

Europe's voters have had enough of the ongoing cuts in public spending, comments the liberal daily Kaleva in view of the overwhelming Socialist victory in the French parliamentary elections: » more

Europe's voters have had enough of the ongoing cuts in public spending, comments the liberal daily Kaleva in view of the overwhelming Socialist victory in the French parliamentary elections: "The election results in France mean that an alternative will now be tested for overcoming the euro crisis. The result also represents a glimmer of hope for European social democrats and other parties on the moderate Left. ... Aside from France, the Social Democrats have become the most popular party in Sweden as well, while the Left Party is also on the rise there. Meanwhile, in Germany the SPD and Greens won the state elections in North Rhine Westphalia. ... While there are different reasons for the rise of the Left in each country, in all of them it seems that voters have had enough of public spending cuts as a panacea for the economic crisis. They now want a different approach."

During a political talk show on Thursday Ilias Kasidiaris, the leader of the neo-Nazi party Chrysi Avgi, attacked Liana Kanelli, a member of the Communist Party, slapping her twice and punching her. This was a blow to democracy itself, the left-liberal online paper To Vima comments, shocked, and warns of the threat of civil war: » more

During a political talk show on Thursday Ilias Kasidiaris, the leader of the neo-Nazi party Chrysi Avgi, attacked Liana Kanelli, a member of the Communist Party, slapping her twice and punching her. This was a blow to democracy itself, the left-liberal online paper To Vima comments, shocked, and warns of the threat of civil war: "Our democracy is our last chance. We must defend it with all means possible. Today it has received a resounding blow. … Every Greek must understand that when democracy is at stake, the country itself is in danger. … If we don't grasp this now then we will not only be on the way to exiting the euro and Europe but also heading towards the absolute catastrophe that we must finally call by its right name: civil war. We must not allow anyone to lead us there and we must not make ourselves complicit by remaining silent."

The Dutch interim minority government led by Prime Minister Rutte agreed on an austerity and reform package with three smaller parties on Tuesday night. But despite this pact the country may face a Southern European scenario after the early elections on September 12, the Christian-social daily Trouw warns: » more

The Dutch interim minority government led by Prime Minister Rutte agreed on an austerity and reform package with three smaller parties on Tuesday night. But despite this pact the country may face a Southern European scenario after the early elections on September 12, the Christian-social daily Trouw warns: "With this agreement valuable time has been gained, but nothing more. The content of the agreement by no means signals that the five parties are willing to form a coalition after the election, much less that voters would make such a coalition possible. ... The Hollandes of this country are with the [social democratic] PvdA, and above all with the [socialist] SP and the [right-wing populist] PVV [which refused to sign the agreement]. Who's to say these three parties won't attain the majority in parliament on September 12? But if they do get a majority, unlike in France they won't appoint the government. So the uncertainty regarding the Netherlands' budget policy continues. It's not just in Southern Europe that big problems aren't addressed and countries become ungovernable."

The Danish centre-left government is considering axing one or two Christian holidays such as Common Prayer Day or Pentecost in a bid to stimulate the economy. This is an assault on Danish culture, the liberal-conservative daily Jyllands-Posten fumes: » more

The Danish centre-left government is considering axing one or two Christian holidays such as Common Prayer Day or Pentecost in a bid to stimulate the economy. This is an assault on Danish culture, the liberal-conservative daily Jyllands-Posten fumes: "With their attack on our public holidays the prime minister and her followers not only demonstrate a fundamental ignorance of Church holidays and the Christian cultural heritage. That would be bad enough in itself. They also show that their research logic lacks even the most basic understanding of the common holidays, common rhythm and common rituals that create our community and ultimately the Danish people and the Danish welfare society. Perhaps the goal is to make us richer. But what good is that when our culture is impoverished because of a blind historical ignorance?"